Post-supply discounts do not automatically reduce recipients' output tax, and fresh assessment must stay within notice allegations.
Case-Laws
GST
Post-supply discounts under section 15(3) regulate exclusion from the supplier's taxable value; they do not automatically permit a recipient to reduce its own outward taxable turnover or output tax liability. Their treatment requires examination of credit notes, invoice linkage, prior agreement, the supplier's return treatment, and the recipient's input tax credit position. Mere disclosure in GSTR-9C cannot alone support an output-tax demand without proof of an actual reduction in outward turnover or tax liability. Appellate and adjudication orders were set aside for fresh inquiry, confined to allegations in the existing show cause notice; a new claim that incentives were consideration for promotional services could not be introduced at the appellate stage.
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