TaxTMI 
TaxTMI 
DISCOUNT ON GST
X X X X Extracts X X X X
X X X X Extracts X X X X
....ISCOUNT ON GST<br> Query (Issue) Started By: - RAVI MUNDRA Dated:- 28-2-2025 Last Reply Date:- 2-3-2025 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>Dear Sir, I have Purchased Some material @ 100 Rs Per Kg on 01/01/2025. At the time of Purchase I am aware that I will receive some discount but it was not fixed. I was aware i will receive discount of 6 Rs per kg but in next month I recei....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ved discount of 8Rs per kg for the purchase made on 01/01/2025. on 10/01/2025 i sold the same material @ 95 per kg. Now Department is asking me to Reverse the input Credit taken on discount. Reply By VENU K: The Reply: There is no provision in GST law that can demand reversal of Input Tax in case of discount from recipient. The entire Section 15(3) relating to discounts is applicable only to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he supplier and not the recipient. The only possibility for department to take action against the recipient is to demand out put tax invoking this is a subside directly linked to price Sec 15(2)(e) My understanding Reply By KASTURI SETHI: The Reply: Dear Querist, You have mentioned that you were aware of the discount to be paid to you by the supplier. Any documentary evidence to the effect of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... your ''awareness'' i.e. prior known to the discount as required in terms of Section 15 (3) (b)(i) ? So first issue involved is whether you are eligible post-sales promotion discount ? Regarding the demand for reversal of ITC, read third proviso to Section 16 (2) below (d) carefully. On this very issue the department has issued SCN to the taxpayer in Chandigarh zone also. Reply ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....By Shilpi Jain: The Reply: There should not be any requirement to reverse credit.<br> Discussion Forum - Knowledge Sharing ....