GST on month end discount to distributor - Goods and Services Tax - GST

Dear Sir/madam, Facts of the case: 1. We sold 1000 kg of product sold to distributor @360 per kg with 12% gst resulting in ITC of INR 43,200 to distributor. 2. Distributor is eligible for Quick payment scheme wherein he will get a discount of 60 per kg during the month end based on prior agreement for which credit note of INR 60,000 is issued without GST . Please note that credit note can be linked to original invoice 3. The distributor is sells the 1000 kg to ultimate customer @ 310 per kg( after adding his margin of 10 rupees) with 12% gst. This will result in Net ITC of 6000 left out in Distributors credit ledger. Query: 1. Can we issue commercial credit in the above scenario as only 2 conditions set out in Section 15(3)(b) (ii) are satisfied or should we issue GST credit note. 2. Will the above transaction result in loss to the government as the distributor will always be left with ITC in his account? Kindly help