reversal of input tax credit on financial credit notes

[lagudu sivakumar]

Dear Expert,

Our client have purchased material from reilance industries ltd, as a post sale , if our client paid the amount within due , they issued financial credit notes with out effecting the gst on such credit notices.

my query was whether such credit notes issued by reilance industries is taxable under gst

Regards,

Siva KUmar

[Shilpi Jain]

It is not compulsory to issue a credit note with GST even if the conditions under the law are satisfied for its issuance.

There is no concept of GST liability on credit notes under GST.

So in the present case there is no issue even if a financial CN is issued

[Amit Agrawal]

As there is no supply per se against issuance of financial credit-notes in nature of post-sale discount, there cannot be any gst liability against financial credit-notes so issued.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[lagudu sivakumar]

Thanks for Shilpi Jain and Amit agrawal for your responses.

if there are any High court and supereme court judgements regarding the Financial caredit note issues.

Please provide any court decisions and case laws if any

Thanking YOu

AI Summary

Financial credit notes and GST: post sale credit notes do not create an independent GST liability under current practice. Issuance of financial credit notes for post sale discounts does not constitute a fresh supply and therefore, according to practitioner responses in the record, does not create an independent GST liability; the document notes potential input tax credit reversal concerns but contains only advisory views and no judicial authorities on mandatory tax treatment.