XYZ, a goods manufacturer and suplier company has made an agreement with a distributor to provide turnover discount (post-sales) if distributor achieves quarterly targets as mutually decided by both. Thereafter, Credit note is issued by suplier for this turnover discount.
My question is that do distributor needs to pay any gst on such credit note issued against turnover and if not, do they need to be mentioned in GST returns?
The supplier ll be given Credit Note based on "Goods or Services" then it ll be treat as GST taxable Supplies....
But, In case it treated only "Payment" related activities then GST not applicable in this transaction. Also don't be show the transactions in anywhere is GST returns...
GOOD LUCK...
CAclubindia
