Please Help: Whether GST on Discount?
Posted Date : 14-Sep-2019 , 04:27:33 pm | Posted By Ashutosh Saxena
Party purchased raw material at say Rs. 100/- but later on it was decided that rate should be Rs. 98/- and matter settled at Rs. 98/-. But supplier did not issue any Credit Note and the purchaser treated difference of Rs. 2/- as other income. GST effect was not given on this difference of Rs. 2/-. Pl. Comment.
Category : GST | Answers : 0 | Comments : 1 | Hits : 689
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bunny sadhnani
19-Sep-2019 , 11:31:29 amWhen you offer your customers a discount on the selling price of your goods and services, GST is chargeable on the net discounted price i.e Rs 98. The same applies to prompt payment discount. When the rebate is given to your customer in the form of cash, it is equivalent to a discount given for past purchases. You are required to issue a credit note to your customer to reduce the selling price and GST amount for his past purchases.