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From 1 November 2026, what must happen for a discount given after a supply to be excluded from the value of that supply under section 15(3)(b) of the CGST Act, 2017?

Question and options

From 1 November 2026, what must happen for a discount given after a supply to be excluded from the value of that supply under section 15(3)(b) of the CGST Act, 2017?

  1. The recipient certifies that it has not claimed input tax credit on the original invoice

  2. The discount is agreed before or at the time of supply and linked to the specific invoices

  3. The discount is shown on the face of the original tax invoice issued for the supply

  4. The supplier issues a credit note and the recipient reverses the attributable input tax credit

Answer and explanation

Correct answer: D - The supplier issues a credit note and the recipient reverses the attributable input tax credit

Section 15(3)(b) of the CGST Act, as substituted by the Finance Act, 2026 with effect from 1 November 2026, excludes a post-supply discount from value where the supplier has issued a credit note for it and the recipient has reversed the input tax credit attributable to it, in accordance with section 34. The earlier conditions of an agreement made before or at the time of supply and a link to specific invoices have been removed; a discount shown on the invoice itself falls under clause (a).

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