one of my automobile dealer has received commercial credit note in form of performance incentive/ target incentive.Now A.O. is charging output Gst on commercial credit note treating it post supply discount without any agreement with company.
In reply, I offered him latest judgement of Hon. madras high court in case of M/s Supreme Paradise - 2024 (2) TMI 351 - MADRAS HIGH COURT where it is clearly mentioned that Unless discount is offered on acocunt of subsidy, it can not form of Transaction value. I also quoted circular No 92/11/2019 where it is clarified that no tax on commercial credit note will be charged.
But A.O. denied the submission and charged tax. Pls guide.
Dealer's Incentive Credits Deemed Post-Supply Discounts, Triggering GST; Highlights Need for Agreements and Legal Clarity An automobile dealer received commercial credit notes as performance incentives, which the Assessing Officer (A.O.) treated as post-supply discounts, thus charging GST without an agreement. Despite referencing a Madras High Court judgment and a GST circular stating such notes should not attract GST, the A.O. rejected the submission. Participants in the forum discuss the legal intricacies, emphasizing the need for documented agreements to avoid GST on such transactions. Suggestions include appealing the decision and exploring legal precedents. The discussion highlights challenges in convincing tax officers and the importance of solid documentation and legal expertise. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
