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GST on discount..

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This query is : Resolved

Quick Summary

This discussion clarifies whether discounts received from a supplier, issued via a credit note without GST, are taxable under GST. The consensus is that discounts acting as a reduction in the purchase price are not considered a supply by the recipient. Therefore, GST is not applicable on these types of discounts.

Kadiwal and Associate

Kadiwal and Associate (Querist)

08 March 2025 For the mobile shop dealer

Discount received from supplier by credit note (not included GST) are taxable under GST?

Means, dealer receives discount from supplier for target fulfilment, timely payment etc. supplier issues credit note to recipient but not calculated GST (flat discount SCN issued).

Is this type of discount are taxable under GST?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 March 2025 Discounts, when received as a reduction in the purchase price, do not constitute a supply by the recipient to the supplier. Therefore, no GST is applicable on such discounts.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

04 October 2025 Good luck...

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