No Reversal of ITC on financial credit note in relation to post sale discount

In re Vedmutha Electricals India Private Limited  (GST AAR Andhra Pradesh) The recent ruling by the AAR Andhra Pradesh in the case of Vedmutha Electricals India Pvt. Ltd. clarifies the eligibility of businesses to retain Input Tax Credit (ITC) even when a financial credit note is issued for a post sale discount. AAR ruled that assessee is eligible to take full credit of GST charged in invoice issued by the supplier even though later commercial/financial credit note has been issued. Facts: M/s. Vedmutha Electricals India Private Limited (“the Applicant”) are engaged in the business of...