Unjustenrichment – Issue of Credit Note
Query (Issue) Started By: – CA.LALIT MUNOYAT Dated:- 28-5-2018 Last Reply Date:- 30-5-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Can a supplier issue a Credit Not to its recipient for GST collected in excess, on downward revision of the price after the supply was made. The original invoice to which the CN is mapped shows GST collected on the Full value calculated at the original rate. This will reduce the output liability of the Supplier. IS such a CN equal to to the Refund as envisaged in the ACT.
\nReply By YAGAY and SUN:
\nThe Reply:
\nIn our view if your customer reverse the ITC then you will be able to get the refund otherwise not.
\nReply By Nitika Aggarwal:
\nThe Reply:
\nDear si<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n JAY MALHOTRA: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n and understood at the time of removal in form of price circulars, price lists, discount policy, circulated among the dealers their deduction from the assessable value would have to be allowed in view the Apex Courts judgment in the Apex Court in the case of Union of India Vs. M\/s. Madras Rubber Factory [ 1986 (12) TMI 35 – SUPREME COURT OF INDIA ] (supra) even if the same were quantified, subsequently, subject to the conditions that the same had actually been passed on to the buyers. If the discounts, in question, are deductible from the assessable value, the respondent would be eligible for refund subject to the provisions of Section 11b of the Central Excise Act, 1944 i.e. and being not hit by the principle of unjust enrichment. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Unjustenrichment – Issue of Credit Note Query (Issue) Started By: – CA.LALIT MUNOYAT Dated:- 28-5-2018 Last Reply Date:- 30-5-2018 Goods and Services Tax – GSTGot 6 RepliesGSTCan a supplier issue a Credit Not to its recipient for GST collected in excess, on downward revision of the price after the supply was made. The original invoice … Continue reading “Unjustenrichment – Issue of Credit Note”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11952","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11952"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11952\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nThe Reply:
\n Very concise and brief reply by Yagay and Sun. Agreed.
\nReply By YAGAY and SUN:
\nThe Reply:
\nThanks Sanjay Sir.
\nReply By CA.LALIT MUNOYAT:
\nThe Reply:
\nThe issue has different connotations under different circumstances. However the rule that has been determined by the SC is being consistently followed by the lower authorities. The decision depends upon whether the discount given was known at the time of Sale or not. The following judgment clears the situation:
\n2018 (2) TMI 1105 – CESTAT MUMBAI
\nMAHANAGAR GAS LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, MUMBAI
\nRefund claim – trade discount – price variation clause – Held that: – the trade discount was not known to prior to the clearance and thus at the time of cle<\/p>\n
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\nMarch 28<\/p>\n
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