The supplier has billed for goods supplied, and subsequently provided a discount for prompt payment (the discount conditions are outlined in the agreement).
Whether the receiver can raise a invoice to the supplier to claim the benefit of said discount, rather than the supplier issuing a Cr. note. If yes what type of service should the supplier indicate on invoice?
Recipients Can't Issue Invoices for GST Discounts; Only Suppliers Can Under Section 34. Cash Discounts Not GST-Related. A discussion on a forum addressed whether a recipient can issue an invoice to claim a discount under GST instead of the supplier issuing a credit note. Participants agreed that under Section 34 of GST, only suppliers can issue credit or debit notes. However, recipients can issue accounting documents, which do not impact GST. It was noted that a cash discount is outside GST's purview. Options for suppliers include issuing a GST credit note, affecting GST liability and ITC, or a financial credit note without GST impact. Concerns about issuing a tax invoice by the recipient were dismissed. (AI Summary)
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