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Cash discount - reg

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Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2017 Sold garments worth Rs.10000 and the customer paid cash for the same. After that discount of Rs.1000 is paid to the customer. Whether GST is to be paid on the discount paid Rs.100, if so at what rate and kindly explain the logic.

Amol S Joglekar

Amol S Joglekar (Expert)

27 June 2017 is it in the same month or different months?......(Paying/receiving of 10000 cash AND giving/receiving discount 1000)

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2017 In the same day/month

Amol S Joglekar

Amol S Joglekar (Expert)

27 June 2017 If date of sale, date of receipt of cash is same......then record the transaction at net of discount i.e. 9000
If date of sale and date receipt of cash are different.....then record the sale transaction at 10000 and issue credit note for discount for 1000.
The logic is ultimately the businessman is liable for GST on 9000 and not 10000

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