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GST UPDATEZ ON 03-06-2024 by R.SRIVATSAN, IRS, NACIN, CHENNAI Suppliers giving post-sale discounts through credit notes under GST will have…
The Hon’ble Delhi High Court in the case of M/s. JSW Steel Limited issued notice in the writ petition filed challenging Circular No. 212/6/2024-GST dated June 26, 2024 wherein it has been mandated to collect CA/CMA certificate from the recipient ensuring that the credit has been reversed relating to post-sales discount.
Credit notes in GST amidst clarifications by the CBIC on post-sale discount related tax adjustments
The GST Council has recommended a mechanism for suppliers to demonstrate compliance with Section 15(3)(b)(ii) of the CGST Act, 2017, related to post-sale discounts.
Suppliers giving post-sale discounts through credit notes under GST will have to ensure that the client gives an undertaking or a CA certificate stating that the ITC availed on the discount value has been reversed, the CBIC has said.