TaxTMI 
TaxTMI 
GST on Post Sale discount under sec.15(3)(b) are satisfied
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....ST on Post Sale discount under sec.15(3)(b) are satisfied <br> Query (Issue) Started By: - Nimesh Desai Dated:- 4-8-2025 Goods and Services Tax - GST <br> Got 5 Replies <br> GST<br> <br> Hi, by reading few of the articles what we understood is for post-sale discount via credit note if section 15(3)(b) are satisfied GST may be applied on the credit note. but my question is can we raise/issue a fina....
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....ncial/commercial credit note in this case, as there will be no GST loss to be department. --Reply By: Sadanand Bulbule The Reply: It is worth to refer CBIC Circular No. 212/6/2024-GST dated 26/06/2024. --Reply By: KASTURI SETHI The Reply: Yes. Credit Note without tax can be issued as per Section 34(1) of CGST Act. Also see case law: Brown Craft Industries Ltd. - 2006 (11) TM....
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....I 85 - CESTAT, MUMBAI It is suppliers discretion. --- Sub-Reply By: KASTURI SETHI The Sub-Reply: 2006 (11) TMI 85 - CESTAT, MUMBAI - Brown Craft Industries Ltd. 2008 (2) TMI 189 - CESTAT, MUMBAI - ACS HYDRAULICS PVT. LTD. Although the above case laws pertain to pre-GST era, yet these are very useful to understand the issue and can be relied upon while filing reply. ....
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.... --Reply By: Amit Agrawal The Reply: If conditions under section 15(3)(b) are satisfied, it is better to issue credit-note with gst u/s 34. This is because once conditions under section 15(3)(b) are satisfied, value of your supply does not include your given discount. You may still issue financial / commercial credit note, if recipient does not want ....
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....to reverse ITC and you do not want to take re-credit of ITC. But, there may be a possibility of legal dispute at recipient-end for ITC availed against "discount" despite satisfaction of section 15(3)(b) (i.e. except not-reversal of ITC at end of recipient). However, such issuance of "financial / commercial credit note without GST" (instead of credit note u/s 34 with gst) should NOT be u....
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....sed as mechanism to transfer hugely-accumulated ITC from end of supplier to recipient through deliberate planning / business structuring. These are ex facie views of mine and the same should not be construed as professional advice / suggestion or recommendation. --Reply By: Shilpi Jain The Reply: Issuance of GST credit note is not mandatory. One could also choose to issue a financial cred....
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....it note as rightly pointed out, government has receieved it share of taxes of which credit has been taken. <br>***<br> Discussion Forum - Knowledge Sharing....