Dear Experts
We purchase Raw Material in bulk quantity from a supplier. After 5-6 purchases, The Supplier gives us Discount based on quantity in a month and issues a credit note but without levying any gst on it. How should we treat it as we claim all itc when we purchase goods from him and same gst amount also get reflected in ours Gstr-2A but credit notes are not reflected there.
Whether we should reverse the ITC or do any other treatment of it.
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Quantity Discount
Replies (2)
you can avail whole ITC if credit note don't include GST because your supplier had paid whole amount to the government
No ... no need to Reverse ,. it's financial Credit Note , hence book it as under Income
For more details kindly refer Circular 92/11/2019 GST
For more details kindly refer Circular 92/11/2019 GST
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