2019 (10) TMI 792

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....and Section 97 of the KGST Act, 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant is a private limited company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: a) Whether the volume discount received on purchases is liable for GST? If yes, under which HSN/SAC? b) Whether volume discount received on retail (on sales) is liable for GST? If yes, under which HSN /SAC? c) Whether the Company has to issue taxable invoice to this effect? 3. The applicant furnishes some facts relevant to the stated activity: a. The applicant states that he is in the bus....

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.... a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 4.1 The transaction of the applicant is examined and found that the authorised supplier is issuing a tax invoice on the supply of goods to the applicant and the applicant is taking credit of the input tax charged in the invoice. The applicant when makes more purchases is eligible for the volume discount on purchases and a credit note is issued by the authorised supplier and no adjustment of price is made in respect of the goods already sold nor any adjustment of GST is made in the credit note. The applicant is also not claiming any reduction in input tax credit already claimed b....

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.... - (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply." Since the credit note is issued as a post sale event, the same is not covered under the clause (a) of the above provision. Further, the applicant has not reversed the input tax credit attributable to the discount received in the form of credit note from the authorised supplier, the same cannot be covered under clause (b) above. Hence in view of the above, the credit note issued by the supplier in the pertinen....