Dear Sir
One dealer received credit note for discount, volume discount, volume incentive, cash discount, breakages and shortages. All are non GST credit note. These are credited to profit and loss account. Whether these will be taxable under GST in the case of recepient on the term that these are for the service rendered by the recepient to the supplier.
Not at all.These receipts are connected to the supplies that the dealer is receiving through non GST Credit note and these amounts are not towards any independent supply made by such dealer. As no supply is there these amounts shall also not be added to aggregate turnover.
It has further been clarified vide Circular No. 92/11/2019-GST dated 07.03.2019 that financial / commercial credit note(s) can be issued by the supplier even if the conditions mentioned in
clause (b) of sub-section (3) of section 15 of the said Act are not satisfied. In other words, credit note(s) can be issued as a commercial transaction between the two contracting parties.
Team Clearmytax.in