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TMI BlogDISCOUNTS Credit NotesX X X X Extracts X X X X X X X X Extracts X X X X ..... DISCOUNTS Credit Notes X X X X Extracts X X X X X X X X Extracts X X X X ..... ibutors. My question is while settling of the price difference claim as a Mfg co. can we take GST on such price difference ? please respond. Thanks Balakrrishna Patnaik Reply By Ganeshan Kalyani: The Reply: Yes, you can take GST benefit on the discount amount given by you. The condition is the buyer has to reverse the input tax credit claimed to the extent of credit note amount. Thanks. Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By DR.MARIAPPAN GOVINDARAJAN: The Reply: I endorse the views of Shri Kalyani Reply By BALAKRRISHNA PATNAIK: The Reply: Thanks for the response by Mr.Ganeshnan. Futher, i wanted to know the timelines for example my invoice quantity may be sold in parts in discounted rates within 5-6 month even some times. will give you here an example of said transaction. my invoice datails Invoice nO. 123 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dtd. 30th Mar 2018 for qty 100 on 10/- each Out of which 20 qty may be approved to sale in 9/- on 1st sep 2018 10 qty may be approved to sale in 8/- on 15th oct 2018 Then in Nov-18 my distributor raises a claim on me to settle the diff. ( his purchase rate - his selling rate ) Please let me know the GST impact on this transaction. Thanks & Best regards, Balakrishna Patnaik Reply By DR.MARI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... APPAN GOVINDARAJAN: The Reply: If there is an agreement between the parties regarding to discount then such discount may be given. No time limit is in law for this. Earlier is advisable. Reply By Ganeshan Kalyani: The Reply: Restriction on taking input tax credit on purchase invoice /debit note is given in section 16. However, the word credit note is not mentioned in it. Hence, I am also of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view that discount can be given in the timlines as mentioned in your query. Reply By Ganeshan Kalyani: The Reply: In view of section 34 which states as under : (2) Any registered person who issues 2[one or more credit notes for supplies made in a financial year] in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which such credit note has been issued but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed: Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax and interest on such supply has been passed on to any other person.
In view of the above clause, the discounts given after September month of subsequent year of sale the GST credit on that discount component would not be allowed. However, if credit note to be raised for discount without giving impact of GST then there no time limit. Thanks. X X X X Extracts X X X X X X X X Extracts X X X X
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