GST Levy on Cash Discount(CD)
This query is : Resolved
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.
I have elaborated my query with example - Suppose we have raise a Invoice of Rs. 20,00,000/- (Incl. of Tax) to a party and such party made a payment of Rs. 19,60,000/- after deducting Cash Discount of Rs. 40,000/- now Rs. 40000/- in our books is still outstanding
Now i want to know ,
i) Can we raise Credit note of Rs. 40000/-(Incl. of GST) & whether Customer need to reverse the GST Amount on Rs. 40000/-
ii) Any other option like Discount & GST implication on such Discount.
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.
I have elaborated my query with example - Suppose we have raise a Invoice of Rs. 20,00,000/- (Incl. of Tax) to a party and such party made a payment of Rs. 19,60,000/- after deducting Cash Discount of Rs. 40,000/- now Rs. 40000/- in our books is still outstanding
Now i want to know ,
i) Can we raise Credit note of Rs. 40000/-(Incl. of GST) & whether Customer need to reverse the GST Amount on Rs. 40000/-
ii) Any other option like Discount & GST implication on such Discount.
25 March 2022
GST not applicable on cash discount.
Raise credit note without GST. No need for reversal of GST.
Raise credit note without GST. No need for reversal of GST.
26 March 2022
Sir,
Whether we can show Discount in Sales (reducing the Sales) or we will have to show as indirect expense.
Whether we can show Discount in Sales (reducing the Sales) or we will have to show as indirect expense.
29 March 2022
Both treatments can be taken. Better to show as reduction of sales
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Treatment of Pension ?annuity returns on PMVY
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Soyabean hsn code and gst rate
- Regarding IMS Mandatory from 1st July 2026
- AY 26-27 ITR-4 FILING U/S 44-ADA
- TDS on payment to CHA as per new section
- Sale of Forign Shares
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
