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2021 (8) TMI 494 - AAR - GSTTax liability of applicant - discount received through credit notes issued by the M/s. Hindustan Unilever Ltd., (First Supplier) - 1st proviso to Section 34 of CGST Act, 2017 - applicability of advance ruling given by the Hon'ble Kerala Authority for Advance Ruling IN RE: M/S. SANTHOSH DISTRIBUTORS [2019 (11) TMI 223 - AUTHORITY FOR ADVANCE RULING, KERALA], is applicable to this applicant with respect to the credit notes given after supply - commercial credit notes or not - validity of value taken by the applicant is the invoice value prior to the discount - validity of monthly submission of GST return for the year 2017-18 on the basis of discount concepts - mismatch between the tax payment in Form 3B under CGST Rules and the GSTR 2A of the applicant, with respect to discount - steps to be taken by the applicant to safeguard applicant's interest in compliance with the provisions of GST law. Is there any further tax liability to the applicant on the discount received through credit notes issued by the M/s. Hindustan Unilever Ltd., (First Supplier)? - In the light of the 1st proviso to Section 34 of CGST Act, 2017, is there any tax liability on the applicant for the discount received on the basis of credit notes issued by the First Supplier? - HELD THAT:- Sub-section (3) of Section 15 of the CGST Act clearly specifies the circumstances under which and the conditions subject to which any discount can be deducted / excluded for determining the taxable value of a supply. From the facts as stated by the applicant it is seen that the discount received through credit note is a post - supply discount. However, the applicant has not stated whether such discount is established in terms of an agreement entered into at or before the time of such supply. The applicant has neither produced the copy of the agreement entered into by them with the supplier nor disclosed any details of the agreement. Though the applicant has produced a copy of the credit note issued by the supplier, the credit note does not contain any particulars whereby the nature and purpose of the discount and the circumstances under which the credit note was issued could be discerned - in the absence of necessary information regarding the passing over of discount by the supplier through the credit notes, this authority cannot issue any ruling on the above questions. Other issues are not in respect of any matter that is specified in Section 97 (2) of the CGST Act. This authority being a creature of statute has to function within the limits of the jurisdiction conferred on it. Accordingly, the jurisdiction of this authority does not extend to issue rulings on the rest questions.
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