Tax Implication on Post Supply Discount under Price Protection Scheme

Question: In case of Price Protection Scheme the supplier is compensating the Recipient by giving Post Supply Discount in the form of Credit Note without GST. What is the tax liability in the hands of the recipient –

1. If Post Supply Discount is reimbursed by the Supplier based on the quantity sold by the recipient to the end consumer.
2. If Post Supply Discount is given by the Supplier for the entire stock held by the recipient.

Answer: In both cases, since the credit note is without GST, and goods are not returned, the same would be considered as commercial credit note towards adjustment of amount payable by the buyer. Buyer would not be required to reverse any Input Tax Credit on such credit note.