Credit Notes GST

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This query is : Resolved

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This discussion clarifies whether GST Input Tax Credit (ITC) can be claimed when a dealer incurs marketing expenses, is reimbursed via credit notes, and issues a tax invoice. The consensus is that if the dealer acts as an agent and you are the beneficiary and receiver of the service, you can claim ITC. When a credit note with GST is issued, the dealer does not need to issue a separate tax invoice.

VIKAS ESNAPURAM

VIKAS ESNAPURAM (Querist)
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26 August 2021 Hi All,

Is it correct that my dealer who incurs expenses with regard to marketing activities received from 3rd party and we reimburse the amount through credit notes and our dealer issues tax invoice for the same?

So can we claim GST ITC for that amount which we paid to our dealer as section 16 says that goods/ services to be received for claiming ITC in this case we are not the receiver of service our dealer is the receiver of service.

Please suggest whether can i take ITC or not.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 August 2021 Your dealer is the agent that's why you reimburse the expenses. You are the beneficiary and receiver of service. ITC can be claimed by you.