Discount on the face of invoice
This query is : Resolved
ANIMESH PANDEY
(Querist)
12 July 2018
Dear sir ,
We are providing discount on the face of our tax invoice , not paying any tax on discount amount and not even reversing any amount of input in respect of discount .For example suppose our rate is 105/pc . We are billing 105(gross rate)-5(discount)=100(taxable value)*18%(gst rate), total invoice value Rs.118.
Would there be any problem as we are not paying tax on discount amount and not even reversing ITC of input in respect of discount amount ?? Pls clearify
We are providing discount on the face of our tax invoice , not paying any tax on discount amount and not even reversing any amount of input in respect of discount .For example suppose our rate is 105/pc . We are billing 105(gross rate)-5(discount)=100(taxable value)*18%(gst rate), total invoice value Rs.118.
Would there be any problem as we are not paying tax on discount amount and not even reversing ITC of input in respect of discount amount ?? Pls clearify
13 July 2018
As per my view,
No more problems. But, better to Charge Tax on discount or reverse the ITC on discount value.
Udaya Chandran
(Expert)
13 July 2018
If the discount takes place in the invoice itself, there is no need to pay tax or reverse the ITC.
ANIMESH PANDEY
(Querist)
13 July 2018
Sir in section 15 of cgst , There is nothing like paying tax on discount or reversing ITC of input relating to discount .
Pls clear sir
Pls clear sir
Udaya Chandran
(Expert)
13 July 2018
Discount is not included in the value of supply if provided at the time of supply and included in Invoice.
ANIMESH PANDEY
(Querist)
14 July 2018
thnx sir . there is no need to reverse ITC in respect of Discount ????
Udaya Chandran
(Expert)
14 July 2018
If the discount is shown in the invoice itself, then no need to reverse the ITC.
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