Cash discount treatement

Dear Vijay

KIndly clear your first question. 

Sir,

Like trade discount can we show cash discounts in invoices as a deduction from transactional value, if mutually agreed by the buyer and seller to provide cash discount for prompt payments at the time of issuing sale invoice.

Thanks..

Dear Vijay,

You can show, any type of discount in Invoice, unless you have some basis. The amount need to deduct from Assesable value while calculation the GST. 

If you want to give the CD after issuing the Invoice. Then you need to issue a credit note to the party. 

There are two opinions of authers/GST consultant on reversal of GST on CD (after Invoice). My view is, it is not affected the Assesable value. So you need not to reverse the credit on the same. 

Thanks for your Reply sir.

Sir,

One more clarification.. In case of CD given after invoice (without prior agreement) is CD taxable? If so do we need to add Gst on credit note value?

Thanks.

I replied your question in last line. 

As per my view it is not taxable. (i.e. No need to reverse the tax.)

But some industries are following the GST on CD format for safe side. 

There in no net impact on buyer and seller of GST on CD. 

Thank you very much for the replies sir.

Vijay