TNN / Updated: Jun 28, 2024, 10:04 IST
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Under new GST guidelines, suppliers giving post-sale discounts via credit notes must obtain customer undertakings or CA certificates confirming the reversal of the Input Tax Credit (ITC) on the discount. This ensures compliance and auditing proof, addressing the lack of a mechanism to track ITC reversals on such discounts.
Representative Image (Picture Credit: ANI)
NEW DELHI: Suppliers giving
post-sale discounts
through
credit notes
under GST will have to ensure that the client gives an undertaking or a CA certificate stating that the
Input Tax Credit
(ITC) availed on the discount value has been reversed, the
CBIC
has said. Currently, there is no mechanism to track whether ITC on such discounts has been reversed or not.
EY Tax Partner Saurabh Agarwal said these documents, with a unique ID number, serve as proof for audits and ensure consistent application of GST rules on post-sale discounts.
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