How to charges GST in the case of

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This discussion clarifies how Goods and Services Tax (GST) applies to trade discounts and cash discounts. Generally, GST is not applicable to trade discounts if they are recorded on the invoice at the time of supply. However, GST is applicable to cash discounts, especially if they are provided after the supply and agreed upon beforehand. The key is whether the discount is documented in the invoice at the point of sale.

Daya

Daya (Querist)

01 June 2022 How to charges GST in the case of
Trade Discount and cash Discount.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 June 2022 No GST applicable on trade discount and GST applicable on cash discount.

R. B. Yadav (CMA, LLB)

R. B. Yadav (CMA, LLB) (Expert)

02 June 2022 Discount which is given on or before the time of supply & duly recorded in invoice and discount given after supply which is as per the terms of agreement agreed before doing the supply, You need to charge the GST on discount vale. Other than this, you will be liable to pay the GST.

R. B. Yadav (CMA, LLB)

R. B. Yadav (CMA, LLB) (Expert)

02 June 2022 Correcting the sentence- "You need to charge the GST on discount vale" to be read as "You need not to charge the GST on discount value"

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