Mechanism for providing evidence of compliance of conditions of Section 15(3)(b)(ii) of the TNGST Act, 2017 by the suppliers

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....nistry of Finance, Department of Revenue, CBIC, GST Policy Wing. ****** In the reference cited, the Government of India, Ministry of Finance, Department of Revenue CBIC, GST Policy Wing, has issued Circular No 212/6/2024-GST, dated 26.06.2024 based on the recommendations of the GST Council. Hence, following pari-materia circular is issued. In cases where the discounts are offered by the suppliers through tax credit notes, after the supply has been effected, the said discount is not to be included in the taxable value only if the condition of clause (b)(ii) of sub- section (3) of section 15 of the Tamilnadu Goods and Services Tax Act, 2017 (hereinafter referred to as "TNGST Act"), for reversal of the input tax credit attributable to....

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....established in terms of an agreement entered into at or before the time of such supply; ii. Such discount must be specifically linked to the relevant invoices iii. Input Tax Credit attributable to such discount on the basis of document issued by the supplier has been duly reversed by the recipient. 2.2 Accordingly, wherever any discount is offered by the supplier to the recipient, by issuance of a tax credit note as per section 34 of the TNGST Act, after the supply has been effected, the said discount can be excluded from the value of taxable supply only if the conditions of clause (b) of sub- section (3) of section 15 of the TNGST Act are fulfilled. Such conditions inter alia includes the requirement of reversal of inp....

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.... ICAI website https://udin.icai.org/search-udin and that issued by CMAs can be verified from ICMAI website https://eicmai.in/udin/VerifyUDIN.aspx. 2.7 In cases, where the amount of tax (CGST+SGST+IGST and including compensation cess, if any) involved in the discount given by the supplier to a recipient through tax credit notes in a Financial Year is not exceeding Rs 5,00,000 (rupees five lakhs only), then instead of CA/CMA certificate, the said supplier may procure an undertaking/ certificate from the said recipient that the said input tax credit attributable to such discount has been reversed by him, along with the details mentioned in Para 2.5 above. 2.8 Such certificates issued by the CA/CMA or the undertakings/ certificates issued....