AI Drafter 
TaxTMI 
TaxTMI 
2020 (7) TMI 226
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....ing an Advance ruling in respect of the following questions. 1. Whether dealer is required to reverse input tax credit proportionate to the reduction in the value of supply? 2. Whether the applicant can issue commercial credit note to its dealers for post sale discounts without charging GST? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean....
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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." 2.5 In cases of post-sale discounts, it is not possible for the applicant to satisfy to the condition as stipulated under section 15 (3) (b) (ii), for various reasons like; dealers may not be registered under GST Act and hence, not entitled for such credit; there may be end customers who may also not be entitled for such credit, etc. Hence applicant intends to issue commercial credit notes to its dealers with th....
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....s/recipients are not required to reverse the credit in case of a post-sale discount provided by the applicant. Accordingly, the applicant can issue commercial credit notes without the GST component to its dealers. 2.12 Applicant has also cited Circular No. 92/11/2019-GST dated 07.03.2019 to state that in cases where the conditions under section 15 (3)(b)(ii) cannot be satisfied, applicant can issue commercial credit notes for the same. 2.13 Further submissions states that once the applicant has not claimed any refund or deduction in the value of the tax payable, the entire tax has been paid to the exchequer. Therefore, there is no revenue implication in the instant case. 03. CONTENTION - AS PER THE JURISDICTIONAL OFFICER: In rep....
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.... "Whether their dealer is required to reverse input tax credit proportionate to the reduction in the value of supply?." 5.2.1 This authority is governed by the provisions of Chapter XVII of CGST ACT & the relevant Sections 95 to 98, 102, 103, 104 and 105. As per Section 95, the term 'advance ruling' means a decision provided by this authority to the applicant on matters or questions specified in Section 97(2), in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. As per provision of Section 95 of CGST ACT, this authority can give a ruling to the applicant on matters or questions raised, in relation to the supply of goods or services or both being undertaken or propo....
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...., i.e. Whether their dealers are required to reverse input tax credit proportionate to the reduction in the value of supply. 5.3.3 Therefore the said referred decision of the Appellate Authority is not applicable in this case. 5.4 The second query of the applicant is:- "Whether the applicant can issue commercial credit note to its dealers for post sale discounts without charging GST?" 5.4.1 Section 97(2) of the CGST Act, 2017, states that the question on which the advance ruling is sought under this Act, shall be in respect of- a. classification of any goods or services or both; b. applicability of a notification issued under the provisions of this Act; c. determination of time and value of supply of good....