GST Implications on Cash Discount
This query is : Resolved
Quick Summary
25 March 2022
Dear Sir,
We have raised some invoices to few Parties on one condition that on receiving the Invoice & Material, they will make the payment after deduction of Cash Discount. But this Condition was not disclosed in the invoices raised to the above parties. Now, I want to know for Balancing the Ledger of such parties i need to raise Credit Note but What will be the GST Implications on such Credit Notes.
We have raised some invoices to few Parties on one condition that on receiving the Invoice & Material, they will make the payment after deduction of Cash Discount. But this Condition was not disclosed in the invoices raised to the above parties. Now, I want to know for Balancing the Ledger of such parties i need to raise Credit Note but What will be the GST Implications on such Credit Notes.
CA R SEETHARAMAN
(Expert)
25 March 2022
It's cash discount no GST impact.
CA Puja Sharma
(Expert)
25 March 2022
Yes GST cannot be reversed against cash discount.
You have to issue Financial Credit Note and not GST credit note.
You have to issue Financial Credit Note and not GST credit note.
26 March 2022
Sir/Mam,
Whether we can show Discount in Sales (reducing the Sales) or
we will have to show discount allowed as indirect expense.
Whether we can show Discount in Sales (reducing the Sales) or
we will have to show discount allowed as indirect expense.
26 March 2022
Sir/Mam,
Whether we can show Discount in Sales (reducing the Sales) or
we will have to show discount allowed as indirect expense.
Whether we can show Discount in Sales (reducing the Sales) or
we will have to show discount allowed as indirect expense.
CA R SEETHARAMAN
(Expert)
26 March 2022
This being cash discount show it as indirect expenses.
28 March 2022
Sir, then it need to be shown in GST return as we have raised credit notes or not and if not then how to reconcile sales figure on GST portal and books
CA R SEETHARAMAN
(Expert)
28 March 2022
It's financial credit note without GST need not be shown in GST return. So no reconciliation problem.
CA Altamush Zafar
(Expert)
29 March 2022
You will not decrease your GST liability through credit notes for cash discounts. Therefore such credit notes will not get reflected in your GST returns
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