XYZ (India) supplying goods at Rs.100 to PQR(India), the invoice is given to PQR for Rs.100 but as per the agreement with the Parent Company of XYZ, it cannot be sold at Rs.100 to this customer and therefore XYZ is subsequently i.e., after the supply, is issuing Credit Note with GST to PQR as discount. For the loss incurred by XYZ against such discount given, XYZ is recovering the same from their Parent Company by issuing Debit Note in foreign currency. Is XYZ liable to pay GST on the amount recovered?
Kaustubh Karandikar Asked question December 5, 2020
Very complex transaction. We need to identify supply here. The facts provided are not sufficient to provide a prima facie opinion.
Team Clearmytax.in
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Frah Saeed Changed status to publish December 10, 2020