https://www.taxtmi.com/forum/issue?id=119936 Input Tax Credit must be reversed only where the supplier's credit note reduces the supplier's outward tax liability; if the manufacturer's post sale allowance is a commercial incentive that does not adjust the GST on the original purchase invoice, no ITC reversal is required. The seller must invoice at the actual transaction value or show a pre supply discount on the invoice when the discount is known at or before supply; misrepresenting taxable value by invoicing the higher amount without discount is non compliant. Reconciliation, reporting of supplier credit notes in returns, and corresponding accounting entries are necessary. en-us Sun, 27 Apr 2025 20:36:02 +0530 Sat, 03 May 2025 11:40:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=119936 Input Tax Credit must be reversed only where the supplier's credit note reduces the supplier's outward tax liability; if the manufacturer's post sale allowance is a commercial incentive that does not adjust the GST on the original purchase invoice, no ITC reversal is required. The seller must invoice at the actual transaction value or show a pre supply discount on the invoice when the discount is known at or before supply; misrepresenting taxable value by invoicing the higher amount without discount is non compliant. Reconciliation, reporting of supplier credit notes in returns, and corresponding accounting entries are necessary. Discussion-Forum GST Sun, 27 Apr 2025 20:36:02 +0530 https://www.taxtmi.com/forum/issue?id=119936