Valuation - The additional discount reimbursed by M/s. Castrol, ...

Company's Discount Reimbursement Increases Consideration for GST; No ITC Reversal Needed on Commercial Credit Notes.

July 20, 2021

Case Laws     GST     AAAR

Valuation - The additional discount reimbursed by M/s. Castrol, is liable to be added to the consideration payable by the customers or dealers to the appellant. The appellant is liable to pay GST at the applicable rate. - M/s. Castrol is issuing commercial credit notes, hence are not eligible to reduce their original tax liability. Thereby the appellant will not be liable to reverse the ITC attributable to the commercial credit notes issued to them by M/s. Castrol. - AAAR

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