As per GST Rules, 

  • Discounts not known at the time of supply cannot be claimed as a deduction from the transaction value for GST calculation. 
  • Discounts will be allowed as deduction from transaction value for GST calculation only if it can be traced back to relevant tax invoice. 

Discount credit note is issued to calculate the difference in billing value and settlement value.  Now there are two factors :

  1. This discount is not known at the time of supply
  2. Also, it is not possible to trace back the tax invoice to which this credit note needs to be applied.

Therefore no GST is reversed or added in the discount  credit / debit note. Please note GST deposited by the brand is fully recoverable by brand in either of following ways :

  • If goods are sold, GST deposited by brand is added back to settlement value (payable value). 
  • If goods are not sold and Brands decides to recall the goods back, Eshopbox will issue invoice to Brand on the same billing value calculation. Brand will get GST input credits on the same.