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GST doubt.

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Ajnas

Student

844 Points Posted on 05 June 2021

A Ltd issued GST credit note Rs.100000+18% to B Ltd In September 2020 and B Ltd reversed such credit note itc Rs.100000+18%, then due to non satisfaction of condition of such discount as per the agreement between A Ltd and B Ltd , A Ltd recovered such discount from B Ltd. And raised GST debit note by A Ltd. To B Ltd. And B lt claimed such discount input reversed earlier? This treatment is correct? It is as per GST law?

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Quick Summary

This discussion explores the correct GST treatment when a credit note is issued and later reversed due to unmet discount conditions. A Ltd issued a credit note to B Ltd, which B Ltd reversed. When the discount conditions weren't met, A Ltd issued a debit note and recovered the discount. The core question is whether B Ltd can reclaim the previously reversed input tax credit and if this process aligns with GST law.