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2019 (8) TMI 307 - AAAR - GSTInput tax credit -allowability of discounts on invoice value raised by the suppliers for determination of credit - credit to be allowed on full GST charged on the undiscounted supply invoice or a proportionate reversal of the same is required to be done - post purchase discount given by the supplier to them through the C2FO platform - HELD THAT:- A conjoint reading of Sections 15 and 16 leads to the conclusion that a registered person is entitled to take full credit of the input tax charged on the supply of goods or services or both. The provisions of the second proviso to section 16(2) would come into play only where the buyer/ recipient fails to pay the supplier of goods the amount towards the value of the supply. This is not the situation here. The buyer has discharged the GST charged on the undiscounted transaction value at the time of supply. In the circumstances, if the GST charged and paid is not reversed/ refunded in whole or part subsequently in any manner or circumstances, the credit availed on the same need not be reversed. Like in the case of rule 3 of Cenvat Credit Rules, 2004 which refers to credit of duty “paid” by the inputs manufacturer and not duty “payable”, section 16 of the Act refers to the credit of input tax ‘charged’ and not “chargeable”. The appellant M/S MRF Ltd can avail the Input Tax Credit of the full GST charged on the undiscounted supply invoice of goods/ services by their suppliers. A proportionate reversal of the credit is not required to be done by them in case of a post purchase discount given by the supplier to them through the C2FO platform, in the circumstances mentioned by them and discussed above. This is subject to their fulfilling the other conditions stipulated by law and that the GST paid by them for the said goods/ service is not reversed or reimbursed/ re-credited etc to them in any manner by the supplier or on his behalf, after the credit has been availed by M/s. MRP.
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