CREDIT NOTE FOR REBATE

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This query is : Resolved

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This discussion clarifies whether GST should be charged on credit notes issued for performance-based rebates. The consensus is that these are essentially cash discounts or financial credit notes, and therefore, GST is not applicable. The conversation also touches upon the specific GST sections that support this treatment.

ANIL MATHUR

ANIL MATHUR (Querist)
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05 March 2020 Can we issue a credit note without charging the GST to our customer on account of Rebate on performance Basis.

Gokul Sharma

Gokul Sharma (Expert)
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05 March 2020 yes its called cash discount.

ANIL MATHUR

ANIL MATHUR (Querist)
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05 March 2020 Thanks Gokul Ji for prompt reply, we are issuing the post sale credit note without GST on the basis on performance of Customer, is it correct or not ?

ANIL MATHUR

ANIL MATHUR (Querist)
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05 March 2020 Thanks Gokul Ji for prompt reply, we are issuing the post sale credit note without GST on the basis on performance of Customer, is it correct or not ?