Clarification on various doubts related to treatment of secondary or post-sale discounts under GST

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....mations, the Chief Commissioner of State Tax, in exercise of the powers conferred under section 168 of the Gujarat Goods and Services Tax Act, 2017 (hereinafter referred to as "the GGST Act") clarifies the issues as under S. No. Issue Clarification 1. Whether the full input tax credit is available to the recipient of supply when the recipients make discounted payments to the supplier of goods on account of financial/ commercial credit notes issued by the said supplier? 1. Section 16 (1) of the GGST Act, 2017 provides that every registered person shall be entitled to take credit of input tax charged on any supply of goods or services or both, which are used or&nbsp....

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....es, whether by the recipient or by any other person. 2. In cases where there is no agreement between the manufacturer and the end customer, there are two independent sale transactions, one from the manufacturer to the dealer and the other from the dealer to the end customer. The essence of the matter is that in a contract of sale, the sale is completed on the transfer of title to the goods to the buyer. Once this happens, the buyer becomes the owner of the goods, and the seller has no vestige of the title or claims therein. The dealer takes ownership of the goods purchased from the manufacturer and subsequently sells them to the end customer and transaction betwee....