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section 34(2)

Shelly (student) (95 Points)

08 July 2018

meaning of "Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person."

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4 Replies

Vinod Babu (24191 Points)
Replied 08 July 2018

As per the provison supplier is not allowed to pass on such benefit , as he will not get reduction in his output liability.

However for example u can take example of exports with igst, if such supplier had taken igst amount from the receipient which he was not supposed to do so , it will be amount to passing on such incidence of tax...

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Shelly (student) (95 Points)
Replied 08 July 2018

but it is very common practice to collect both 'amount of goods + amount of gst' from the recipient, then it means it always will be amount to passing on such incidence of tax...

Kavita Modi (CA Job) (232 Points)
Replied 08 July 2018

it means if you have issued a credit note to any person then if the same is accepted by him then your tax liability will be reduced only when he also reverse his input tax credit which has already been claimed by him before accepting the credit note.