Recommendations Made In The 56th GST Council Meeting

1. Measures pertaining to law and procedure

a. Amendment in Section 15 and Section 34 of the CGST Act 2017 in respect of post-sale discount

• Recognising the persisting challenges, the GST Council has introduced a significant reform. It has been recommended to amend Section 15(3)(b) and Section 34 of the CGST Act to streamline the law with respect to post-sale discounts. The requirement of having a pre-supply agreement and linking discounts to specific supply invoices will be omitted, i.e., Section 15(3)(b)(i). Instead, it is proposed that a post-sale discount must be granted through a credit note under Section 34, for which a corresponding ITC reversal by the recipient will be required. Further, Circular No. 212/6/2024-GST will be rescinded, removing the need for CA/CMA certificates to establish ITC reversal by the recipient. It may be relevant to note that a Section 34 credit note can be issued under certain specified circumstances such as (a) the taxable value