- Suppliers giving post-sale discounts through credit notes under GST must ensure client gives undertaking or CA certificate
- No mechanism currently to track if Input Tax Credit on discounts has been reversed
- Suppliers can procure certificate from recipient or get undertaking for smaller transactions
- Circular has retrospective effect, impacting demands since 2017
- Documents with unique ID number serve as proof for audits and ensure consistent application of GST rules
- ITC available to insurance companies for motor vehicle repair expenses in case of reimbursement mode of claim settlement
- Input tax credit available to insurance company only to extent of reimbursement of approved claim cost to insured, not on full invoice value
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
