Quick Summary
The 56th meeting of the GST Council was held in New Delhi under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council inter-alia made the recommendations relating to changes in GST tax rates, provide relief to individuals, common man, aspirational middle class and measures for facilitation of trade in GST.
The Council has recommended:
- To omit section 15(3)(b)(i) of CGST Act, 2017 thereby omitting the requirement of establishing the discount in terms of an agreement entered into before or at the time of such supply and specifically linking of the same with relevant invoices,
- To amend section 15(3)(b) of CGST Act, 2017 to provide that discount should be granted through a credit note issued under section 34 of the CGST Act and to correspondingly amend section 34 to include a reference to section 15(3)(b), so as to provide for reversal of Input tax credit by the recipient in case where a post-sale discount is given and value of supply is reduced through GST Credit note.
- To rescind circular No.212/6/2024-GST dated 26th June 2024 which provided a mechanism ensuring compliance of conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 by the suppliers.
Click here to view the complete Press Release of the 56th GST Council Meeting
FAQ :
The GST Council has recommended omitting the requirement for post-sale discounts to be established in an agreement before or at the time of supply and linked to relevant invoices.
Post-sale discounts will now be provided through credit notes issued under Section 34 of the CGST Act.
Recipients will need to reverse their input tax credit if the value of supply is reduced via a GST credit note for a post-sale discount.
Yes, circular No. 212/6/2024-GST dated 26th June 2024, which provided a mechanism for ensuring compliance with Section 15(3)(b)(ii) of the CGST Act, has been rescinded.
Sections 15(3)(b) and 34 of the CGST Act, 2017 have been amended.
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