Since the Circular No. 105/24/2019-GST dated 28.06.2.019 regarding issue of Commercial /Financial Credit notes was withdrawn by Circular No. 112/31/2019 dated 03.10.2019 ,please clarify whether we can issue Commercial/Financial Credit Notes without reducing G ST liability.

Reply— 

 As per circular no. 92/11/2019 dated 7th March, 2019, supplier of goods can issue credit note for discounts which are not known at the time of supply or are offered after the supply is already over, these credit note will fall under the category of commercial/ Financial credit note

Value of supply shall not include any discount by way of issuance of Financial credit note except in cases where the provisions contained in clause (b) of sub-section (3) of section 15 of the said Act are satisfied. There is no impact on availability or otherwise of ITC in the hands of supplier in this case. Thus there is no requirement to reverse ITC availed earlier.