<h1>Input tax credit accumulation burdens distributors after GST circular clarifies credit note and trade discount treatment.</h1> The GST circular holds that financial or commercial credit notes issued without GST do not require recipients to reverse input tax credit, creating excess ITC accumulation for distributors with no current refund mechanism; a proposed amendment to Section 15 may later allow suppliers to issue GST credit notes without invoice linkage, requiring recipient-side reversal and potentially relieving blocked ITC. The circular also clarifies trade discount treatment-manufacturer-supported dealer pricing does not add GST, while direct consumer price promises must be added to dealers' taxable value-and industry groups have sought CBIC guidance on ITC treatment after rate rationalisation.