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2019 (11) TMI 223 - AAR - GSTValuation - treatment of discount/rebate allowed - impact on Input Tax Credit (ITC) - the invoice value of the products is displayed only with the value after deducting discount as per the pre-fixed rate scheme - the discount / rebate is subsequently reimbursed by the Principal Company as Commercial Credit Notes - petitioner is paying the tax due as per the invoice value issued by the applicant and availing the input credit of GST shown in the inward invoice received by the applicant from the Principal Company or their stockist - whether the availment of credit is correct or not? - HELD THAT:- The applicant/distributor is eligible to avail ITC shown in the inward invoice received by him from the supplier of goods / principal company. Whether the discount provided by the Principal Company to their dealers through the applicant as shown in Annexure D attracts any tax under the GST laws? - HELD THAT:- The additional discount given by the supplier through the applicant; which is reimbursed to the applicant is to offer a special reduced price by the distributor / applicant to the customers and hence the amount represent consideration paid by the supplier of goods / principal company to the distributor / applicant for supply of goods by the distributor / applicant to the customer - Therefore, this additional discount reimbursed by the supplier of goods / principal company to the distributor / applicant is liable to be added to the consideration payable by the customer to the distributor / applicant to arrive at the value of supply under Section 15 of the CGST / SGST Act at the hands of the distributor / applicant. Whether the amount shown in the Commercial Credit note issued to the applicant by the Principal Company attracts proportionate reversal of input tax credit? - HELD THAT:- The supplier of goods / principal company issuing the commercial credit note is not eligible to reduce his original tax liability and hence the recipient / applicant will not be liable to reverse the ITC attributable to the commercial credit notes received by him from the supplier. Is there any tax liability under GST laws on the applicant for the amount received as reimbursement of discount or rebate provided by the Principal Company as per written agreement between the Principal Company and their dealers and also an agreement between the principal and distributors? - HELD THAT:- The applicant is liable to pay GST at the applicable rate on the amount received as reimbursement of discount / rebate from the principal company.
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