https://www.taxtmi.com/forum/issue?id=115094 Reversal of input tax credit under the second proviso permits recipients to reverse ITC when suppliers issue post supply credit notes or repudiate liability; recipients in the case reversed ITC on receipt of discounts/financial credit notes and treated the reversals as output tax, a position supported by an advance ruling. A later CBIC circular states secondary post supply discounts not meeting statutory credit note requirements do not reduce recipient ITC, creating a potential conflict between the administrative clarification and the recipient centred statutory proviso, while practical guidance distinguishes commercial credit notes from GST credit notes for reversal purposes. en-us Wed, 19 Jun 2019 19:00:34 +0530 Thu, 23 Jan 2025 15:55:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=115094 Reversal of input tax credit under the second proviso permits recipients to reverse ITC when suppliers issue post supply credit notes or repudiate liability; recipients in the case reversed ITC on receipt of discounts/financial credit notes and treated the reversals as output tax, a position supported by an advance ruling. A later CBIC circular states secondary post supply discounts not meeting statutory credit note requirements do not reduce recipient ITC, creating a potential conflict between the administrative clarification and the recipient centred statutory proviso, while practical guidance distinguishes commercial credit notes from GST credit notes for reversal purposes. Discussion-Forum GST Wed, 19 Jun 2019 19:00:34 +0530 https://www.taxtmi.com/forum/issue?id=115094