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Companies reach out to government for clarity on GST applicability on credit notes

Companies reach out to government for clarity on GST applicability on credit notes

Many businesses that provided discounts, reduced prices, or extended payment cycles to customers amid the Covid-19 pandemic have approached the government to clarify the impact of goods and services tax (GST) on these amounts.

According to tax experts, enterprises that issue credit notes or credit memorandums - which are given to consumers when money isn't paid straight away - are witnessing a GST impact.

The pandemic saw many customers renegotiating prices offered by companies - from manufacturing companies to information technology firms - and credit notes have been issued across sectors, experts said.

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