28 April 2018
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?
28 April 2018
GST is not payable on the discount given even after the supply, provided there was an agreement entered between both the supplier and the recipient. also, credit note has to be issued so that buyer can reverse the gst itc claimed on discount amount.
CAclubindia
