Input credit

Dear Sachin,

Thank you for the good question,  your Question contains 3 creteria 1. Buying  2. Selling (profit/loss) 3. Discount.

1. When you buy the Cement bag you are eligible to take the Credit as per Sec.16 of CGST ACT

2. when  you are selling it is on the Invoice value whether it is an profit or loss it is just like an Taxable supply  as per Sec.16 (value of Taxable supply)

3. Discount:  further whether you know that the discount is available to you before you raise the supply  or situation maybe discount effected after supply.

Sec 15(3) The value of the supply shall not include any discount which is given––

1. before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and
2. after the supply has been effected, if—
   (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and
   (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply

however this point as a receipent when you upload the credit Note youe Input tax credit will be automatically reduced.

regards,

Bhavya.P