Que:- I have received cash discount from supplier of goods against early payment . Is ITC on cash discount to be reversed.
Yes: NO
Some consultant say it Yes (saying it is provided under section 15(3) of IGST Act.
Under section 15(3) of IGST Act the supplier is eligible to get re-credit of ITC on cash discount given to purchaser/recipient on the condition that such discount established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices and the purchaser has reversed the ITC on discount.
1st law cannot enforce the supplier to get back ITC on cash discount 2ndly there is no ITC rule providing purchaser to reverse such ITC.
Some Consultant say it yes by referring 2nd proviso to section 16(2)(d).
The proviso to section 16(2)(D) deals with the provision of reversal of ITC if payment not made by the purchaser/recipient within 180 days . Discount so received shall not be deemed as payment not made as the account of supplier and recipient shall speak about clearance of payment .
Yes: NO
Some consultant say it Yes (saying it is provided under section 15(3) of IGST Act.
Under section 15(3) of IGST Act the supplier is eligible to get re-credit of ITC on cash discount given to purchaser/recipient on the condition that such discount established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices and the purchaser has reversed the ITC on discount.
1st law cannot enforce the supplier to get back ITC on cash discount 2ndly there is no ITC rule providing purchaser to reverse such ITC.
Some Consultant say it yes by referring 2nd proviso to section 16(2)(d).
The proviso to section 16(2)(D) deals with the provision of reversal of ITC if payment not made by the purchaser/recipient within 180 days . Discount so received shall not be deemed as payment not made as the account of supplier and recipient shall speak about clearance of payment .
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