Volume rebates, year-end incentives and performance discounts are common commercial practices — but under GST, they have often created uncertainty around credit notes and output-tax adjustment. The proposed changes to Sections 15 and 34 seek to simplify this by bringing post-supply discounts more clearly within the GST credit-note framework.

The change could make life easier for manufacturers, distributors and retailers, especially where discounts were not fixed invoice-by-invoice at the time of supply. But there is an important trade-off: once such discounts are brought squarely within Section 34, the statutory time limit for issuing and reporting the credit note becomes crucial.

Read the full article on TaxGuru: Post-Supply Discounts Brought Under GST Credit Note Time Limits