Dear Sir,
I have Purchased Some material @ 100 Rs Per Kg on 01/01/2025. At the time of Purchase I am aware that I will receive some discount but it was not fixed. I was aware i will receive discount of 6 Rs per kg but in next month I received discount of 8Rs per kg for the purchase made on 01/01/2025.
on 10/01/2025 i sold the same material @ 95 per kg.
Now Department is asking me to Reverse the input Credit taken on discount.
GST Law Debate: No Need to Reverse Input Credit for Discounts Received by Purchasers, Citing Section 15(3) An individual purchased materials at a specified price, expecting a discount, which later turned out to be higher than anticipated. The tax department is now asking for a reversal of input credit due to the discount received. One respondent clarified that GST law does not require reversal of input tax credit for discounts received by the purchaser, as Section 15(3) applies to suppliers. Another respondent questioned if there was documentary evidence of the expected discount, referencing Section 15(3)(b)(i). The final response supported that there should be no need to reverse the credit. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
