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BAJAJ FINANCE

This query is : Resolved 

Facts : Bajaj Finance is giving loan on car/vehicle tyres. We are dealer of tyre. If I issue bill of Rs.100 to customer, bajaj finance will give me Rs.100. Later, that customer pays Rs.100 + interest to Bajaj Finance. We issue bill in the name of Customer. Bajaj Finance is giving monthly bill to us under name "Subvention charges" and charge GST on it. In GSTR-2A Subvention charges 135890.69, CGST 12230.16, SGST 12230.16

Question : If we want to utilize that ITC (GST) then such subvention charges should be debited. Now what entry we should pass ???

By Subvention charges Dr
By CGST Dr
By SGST Dr
To ?????

Since neither we have paid any money nor we liable to pay to Bajaj Fianance.


Dear sir, as per my view to immediate customers to whom you are issuing bill for selling the tyres.

It will results in credit balance to customer account, which is not right in my view.

If I am getting amount lesser than Rs.100 from customer(Bajaj Finance), then your view would have been right.

Customer a/c dr. 100
To Sales a/c 100

Bank a/c dr 100
To Customer a/c 100

Since I am getting entire Rs.100, its not right to credit customer account as per your view since it will results in credit balance to customer's a/c.

Dear Sir,
IN the whole scenerio, Customer is main. which is debited at the time of sale, later money is given by another, so, Bajaj will be crediting and customer will be debiting. Now subvention charges are the expenses which debited to sales account since already customer account has been knock off.


Bajaj Finserv

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