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Treatment of tour package

Manish Shaw (Student) (106 Points)

12 May 2020

We are dealer of berger paint
Company provide us tour on yearly basis
But this year due to pandemic they provide us credit note against our account dues
Please explain the treatment of credit note?
Thank you

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5 Replies

Nihit Somani (109 Points)
Replied 12 May 2020

Are you reg under GST

CA Raghavendra Reddy M (40 Points)
Replied 12 May 2020

Section.34 of CGST Act not applicable in this case, hence GST credit note cannot be issued.

However, financial credit note can be issued without taxes.

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 12 May 2020

In term of Section 15(3) :
The GST less Credit Note shall be issued only if when there is agreement entered into before the time of supply & can be linked to relevant Invoices.

So if there was agreement & can tag to relevant invoices, the GST less credit note shall be issued as per section 34 of CGST Act .
Else, simple financial credit note need to be issued.

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CA Haritha Komma (Chartered Accountant) (1147 Points)
Replied 12 May 2020

If you are registered under GST

1. If GST credit note is received - Input Tax Credit to be reversed

2. If credit note received without GST - No adjustment required to be made in GST being just a financial credit note. The amount payable to them gets reduced to the extent of basic value.

If you are not registered under GST

No adjustment required under GST. Amount payable to them gets reduced to the extent of invoice value (incl. GST if given with GST)

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