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Any Discount

P MURUGAN (ACCOUNTANT) (204 Points)

22 March 2023

Is any provision to pay GST on Goods receiver (purchase) towards Any Discount given by Supplier of goods whose discount given with out effecting GST Amount?

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3 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14912 Points)
Replied 22 March 2023

Discount was given before supply or after supply?.

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P MURUGAN (ACCOUNTANT) (204 Points)
Replied 22 March 2023

After Supply

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 23 March 2023

As per Section 15(3) Discount given after supply will be ALLOWED to deductions in sale value only :
1. It is mentioned in agreement made before supply & can link to relevant invoices; and
2. Receipent has reverse the ITC.

So here it is to be noted that it's supplier who is ALLOWED to reduce his GST only if said condition is satisfied else he can issue a financial credit note.