https://www.taxtmi.com/forum/issue?id=119978 Target incentive discounts linked to purchases should reduce purchase cost and proportionately decrease closing stock when attributable to unsold goods. Under GST, post supply discounts can reduce taxable value only if they are established by a pre existing agreement, linked to specific supplies, and the recipient reverses the corresponding Input Tax Credit; suppliers must issue credit notes and proof of ITC reversal is required for reduction of output tax. Administrative guidance permits alternate evidence where portal matching is unavailable; absent compliance or reversal proof, GST adjustment is not allowed though accounting adjustment for inventory remains appropriate. en-us Wed, 07 May 2025 12:01:13 +0530 Fri, 16 May 2025 07:21:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=119978 Target incentive discounts linked to purchases should reduce purchase cost and proportionately decrease closing stock when attributable to unsold goods. Under GST, post supply discounts can reduce taxable value only if they are established by a pre existing agreement, linked to specific supplies, and the recipient reverses the corresponding Input Tax Credit; suppliers must issue credit notes and proof of ITC reversal is required for reduction of output tax. Administrative guidance permits alternate evidence where portal matching is unavailable; absent compliance or reversal proof, GST adjustment is not allowed though accounting adjustment for inventory remains appropriate. Discussion-Forum GST Wed, 07 May 2025 12:01:13 +0530 https://www.taxtmi.com/forum/issue?id=119978