GST on Post Sale discount under sec.15(3)(b) are satisfied

[Nimesh Desai]

Hi, by reading few of the articles what we understood is for post-sale discount via credit note if section 15(3)(b) are satisfied GST may be applied on the credit note. but my question is can we raise/issue a financial/commercial credit note in this case, as there will be no GST loss to be department. 

AI Summary

Post-Sale Discounts Under Section 15(3)(b) GST Exclude Discount from Supply Value; Credit Note Issuance Guidelines When post-sale discounts meet the conditions under section 15(3)(b) of the GST law, the value of supply excludes the discount, and GST may be adjusted accordingly through a credit note issued under section 34. Issuing a GST credit note is advisable to reflect this adjustment, but it is not mandatory; a financial or commercial credit note without GST can be issued if the recipient does not reverse input tax credit (ITC) and the supplier does not reclaim ITC. However, issuing non-GST credit notes should not be used to manipulate ITC transfers between parties. Relevant case law from the pre-GST era supports supplier discretion in issuing credit notes without tax. The government's share of tax is considered received once conditions are met, so adjustments primarily affect accounting between supplier and recipient rather than tax liability.