1. What is Secondary/ Cash discount under GST?
There are the discounts which are not known at the time of supply of goods made by supplier to the company or are offered after the supply is already over.
For Example, M/s. X supplies 1000 packets of biscuits to M/s. Y at Rs.5- per packet. Thereafter, M/s. X re-value it t Rs. 4/- per packet.

2. Who issue Commercial Credit Note for Secondary Discount?
Commercial Credit Note shall be issued by respective supplier or manufacturer who supplied the goods to the Company.

3. Who issue Commercial Debit Note for Secondary Discount?
The Recipient Company shall issue Commercial Debit Note against the commercial credit note issued by the supplier.

4. Whether GST shall be charged on such Debit Note?
No GST shall be charged by the Company on the commercial debit note.

5. ITC reversal can be taken by Supplier?
Input Credit cannot be taken by the supplier on the basis of commercial debit note issued by the Company.

6. What are the situation the GST can be charged on Debit Note?
1. Taxable value or Tax Charged is more than that payable or
2. Deficiency in Goods or Services or both or
3. Sales Return
If any discount other than above transactions, Commercial Debit Note shall be issued.

7. On what cases, Discount on supply of Goods does not attract GST?
If the said discount is not covered under Section 15(3)(b) of CGST Act, 2017 and if the said discount is not in terms of prior agreement.
Therefore, No GST is leviable on cash discount/ incentive/ scheme offered by the supplier through credit note against supply without adjustment of GST.