GST payable on discount reimbursed by supplier

Kerala Appellate AAR has held that consideration is inclusive of additional discount reimbursed by a company to its distributor and that GST is payable on the same.

It was further held that in cases where supplier issues commercial credit notes and is not eligible to reduce tax liability, the recipient-distributor is not liable to reverse ITC attributable to such credit notes.

Nagri Eye Research Foundation