Gst on turnover discount credit note

This query is : Resolved

Rohit (Querist)
Follow

15 December 2017 "A" is manufacturer and supply goods to "X" on wholesale price less Pre-defined Trade Discount & Cash Discount at time of supply and reduces the same in the TAX INVOICE itself and charged GST on reduced value of goods.
"X" made payment of the Invoice on due dates.
Subsequently based on the total supply of goods, "A" issue Credit Notes towards Discount called as Quantity Discount/Incentives etc. without mentioning any GST on the said value and paid through Cheque/DD/RTGS/NEFT to "X" or even allowed "X" to deduct the value of Credit Notes from future payables.
My Question is :
What is the treatement of this Credit Note in the hands of "A" as well as in the hand of "X" under GST Act?
Will “X” is liable to pay GST on Credit Note issued by “A” and reduce his ITC but in this case “A” is not ready to take the Input tax credit on Credit Note issued by him.

Is there any violation of GST law in it ? "A" has not reduced his GST Liability nor "X" has reversed ITC on account of such Credit Note. There is no impact of Revenue as well.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

15 December 2017 No violation of GST law in it.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sasidhar B

Lalan Kumar Jha

Chnmaya parhi

CA Uzma Khan

Arpita Gilhotra

Subscribe Now

Gst on turnover discount credit note

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA