credit notes in returns

The dealer is purchasing and getting discount lately, therefore he should reverse the taxable amount and the relevant portion of ITC. But this is possible only when GSTR-2 will come into force. Since, in GSTR-3B you have availed more ITC, you should pay the relevant portion of tax as well as 24% interest which will remain in your Electronic Cash Ledger till GSTR-2 is activated. Moreover please remember:-

Discounts given after supply will be allowed only if-

1. It is mentioned in the agreement entered into before sale AND
2. input tax credit proportionate to the discount has been reversed by the recipient of the supply AND
3. It can be clearly tracked to relevant tax invoice

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