TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 1051
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....mutha Electricals India Private Limited (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: 3.1 M/s Vedmutha Electricals India Private Limited (hereinafter referred to as "applicant") are engaged in business of supply various electronic items. Applicant is having GST Registration number 37AACCV5041K1Z6. The applicant purchases various electronic items from M/s. Gold Medal Electricals Private Limited (hereinafter referred as 'supplier'). 3.2 The supplier Issued Tax Invoice In terms of Rule 46 of CGST Rules, 2017, and charged GST on such taxable value, calculated in terms of Section 15 of CGST Act, 2017. 3.3 The applicant submits that, supplier paid GST and filed GSTR-3B for the relevant tax period and reported details of supplies GSTR-1. 3.4 Applicant has received the goods and made the payment of consideration as per tax invoice for the goods received from the supplier. 3.5 The applicant has received various incentives, in the nature of "discounts" from its supplier, viz. Turnover Discount, Quantity Discount, Cash Discounts, Additional Scheme Discounts, 3 Months regular scheme discounts, etc. year....
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....be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless, - (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation. - For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (c) subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilization of input tax credit admissible in respect of the said supply; and (d) he has furnis....
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....nput 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. 5.4 The applicant further submits that, in the present case since the discounts are not recorded in the invoice issued in respect of such supply and in case of the discount given after the supply has been affected, it is not established in terms of an agreement entered into at or before the time of such supply nor is the input tax credit as is attributable to the discount is to be reversed by the recipient of the supply. Hence the value of goods would continue to be the value as determined under Section 15 (1), on which GST has been charged. 5.5 The applicant further submits that, a conjoint reading of Sections 15 and 16 leads to the conclusion that a registered person is entitled Lo take full credit of the input tax charged on the supply of goods or services or both. The provisions of the second proviso to Section 16 (2) would come into play only where the buyer/recipient fails to pay the supplier of goods the amount towards the value of the supply. In the circumstances, if the GST charged and paid is not reversed/refunded in whole ....
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.... the higher duty. Rule 3 of Cenvat Credit Rules, 2004 allows credit of duty "paid" by the inputs manufacturer and not duty "payable" by the said manufacturer. There are many judgments of Hon'ble Tribunal in this regard which have confirmed this view." 5.8 The applicant further submits that, in view of above, the entire amount of duty paid by the manufacturer, as shown In the Invoice would be available as credit irrespective of the fact that subsequent to clearance of the goods, the price is reduced by way of discount or otherwise, However, If the duly paid is also reduced, along with the reduction in price, the reduced excise duty would only be available as credit. It may however be confirmed that the supplier, who has paid duty, has not filed/claimed the refund on account of reduction in price. D. SAME IS ALSO EVIDENT FROM THE C.B.E. & C. FLYER NO. 19, DATED 1-1-2018 "1. Any registered person can avail credit of tax paid on the inward supply of goods or services or both which is used or intended to be used in the course or furtherance of business. 2. The prerequisites for availing credit by registered person are: (a) He is in possession of tax invoice or any other speci....
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....count which is given-- (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) after the supply has been effected, if- (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. Therefore, the discount value shall not be included, as per 15 (3) (b), when such supply has already been affected and the discount is established as per terms of an agreement at or before the time of such supply and there is a link to the invoices of the discount given. Further, the ITC attributable to the discount is to be reversed by the recipient of the supply. 7.3 On examination of the transaction between the applicant and their supplier, M/s Gold Medal, it is found that the supplier is issuing a tax invoice on the supply of goods to the applicant and the applicant is taking ITC on the same. The applicant is issued commercial credit note or financial credit notes ....