cash discount
Raghunath Burdak (student) (32 Points)
28 July 2019value of supply: 1525
gst @ 18%:. 275
total bill. :. 1800
will the cash discount of 5% will be on 1800 or 1525 ?
and how will the debit note be issued?
Raghunath Burdak (student) (32 Points)
28 July 2019
Shorya
(CA Article)
(105 Points)
Replied 28 July 2019
Cash discount will be 5% of taxable value of supply, i.e, 1525*5% = INR 76.25
GST amount to be reversed in this case would be 76.25 x 18% = 13.725
Shorya
(CA Article)
(105 Points)
Replied 29 July 2019
well, in actual practise, debit notes are issued in case of trade discounts and not cash discounts.