https://www.taxtmi.com/article/detailed?id=8007 When a supplier issues a credit note for a post-sales discount, reduction in output tax is permissible only where the discount is agreed at or before supply and linked to invoices, and where the input tax credit attributable to that discount has been reversed by the recipient on the basis of documents issued by the supplier. A supplier faces evidentiary difficulty proving reversal by the recipient, and must consider measures-such as limiting the credit note to the discount amount, adding recipient disclaimers, and reconciling monthly returns-to address the requirement that the incidence of tax has not been passed to another person. en-us Sat, 19 May 2018 07:53:05 +0530 Sat, 19 May 2018 07:53:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=8007 When a supplier issues a credit note for a post-sales discount, reduction in output tax is permissible only where the discount is agreed at or before supply and linked to invoices, and where the input tax credit attributable to that discount has been reversed by the recipient on the basis of documents issued by the supplier. A supplier faces evidentiary difficulty proving reversal by the recipient, and must consider measures-such as limiting the credit note to the discount amount, adding recipient disclaimers, and reconciling monthly returns-to address the requirement that the incidence of tax has not been passed to another person. Articles Goods and Services Tax - GST Sat, 19 May 2018 07:53:05 +0530 https://www.taxtmi.com/article/detailed?id=8007