In case of cement suppliers the company bills say 1 bag @ 250/- to the taxpayer. Taxpayer sales it @ 245/- bag. in month end company gives various discounts like
quantity discounts
scheme discounts
Cash discounts etc.
company has not issued credit note in gst (not reflecting in 2A). Because the credit note not reflecting in 2A Taxpayer has not reversed ITC on the same.
Officer is asking to reverse the same. As per GST on commercial credit notes which are post sales, the Taxpayer have to reverse ITC even if supplier (company) has not reflected the same in GST??
No, commercial credit notes without any GST impact are valid. No need to reverse the GST if opposite party has not shown the same in your 2A or 2B. If opposite party has not shown the credit notes it is an indication that the opposite party might not have reduced their outward tax liability in GSTR-1 and 3B. You can convince the officer by showing him the commercial credit notes received from company if any and can argue that company has also not reduced their liability in this regard.
CAclubindia
