Reversal of Shortage and Discount received

This query is : Resolved

CA Parul Saxena (Querist)
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18 July 2020 1.Cash discount is received by way of credit note but GST is not there in Credit note...still we are supposed to reverse the input on Cash Discount received??
2.Credit note for Shortage received on Purchase made by us. But GST is not there in Credit note...still we are supposed to reverse the input on Shortage??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 July 2020 1 and 2 no need for GST reversal as GST is not there in credit note.

Lekhraj sood

Lekhraj sood (Expert)
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18 July 2020 1. ITC reversal not to be done but there can be litigation exposure as you are not paying the full consideration.
2. Since the quantity received is less, you have to reverse the ITC in respect of shortage.

CA Parul Saxena

CA Parul Saxena (Querist)
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20 July 2020 R Seetharaman Sir can you please share the provision under which the counter party is not reflecting GST portion in Credit Note? I want to know why they are doing so?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 July 2020 See the link.
https://www.google.com/amp/s/taxguru.in/goods-and-service-tax/credit-note-discount-gst-impact-itc-recipient-goods-services.html%3famp

CA Parul Saxena

CA Parul Saxena (Querist)
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20 July 2020 please explain in short

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