https://www.taxtmi.com/forum/issue?id=119658 Whether a recipient must reverse claimed Input Tax Credit when a supplier grants an additional discount after supply turns on how the discount is characterised and whether the recipient was aware of it at the time of supply. The discount rule targets the supplier's transaction value; post supply discounts do not automatically trigger ITC reversal, but a discount treated as a subsidy linked to price can lead to output tax demands and administrative notices. Documentary evidence of prior knowledge and the relevant ITC entitlement proviso are key compliance considerations. en-us Fri, 28 Feb 2025 09:49:46 +0530 Sun, 02 Mar 2025 17:26:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=119658 Whether a recipient must reverse claimed Input Tax Credit when a supplier grants an additional discount after supply turns on how the discount is characterised and whether the recipient was aware of it at the time of supply. The discount rule targets the supplier's transaction value; post supply discounts do not automatically trigger ITC reversal, but a discount treated as a subsidy linked to price can lead to output tax demands and administrative notices. Documentary evidence of prior knowledge and the relevant ITC entitlement proviso are key compliance considerations. Discussion-Forum GST Fri, 28 Feb 2025 09:49:46 +0530 https://www.taxtmi.com/forum/issue?id=119658