Discount - Based on Payment Terms

230 views 1 replies

Dear Experts,

X Pvt Ltd Purchase of Raw Materials from Y Pvt Ltd.

Y Pvt Ltd company offer a discount, if X Pvt Ltd company process the payment for raw material on 30 days,  will give discounts 1% on basic value of goods.

I like to know that, that discount portion GST should reverse in return...?

Please share implication in view of GST

Thanks & Regards

Fareed

XYZ PVT LTD (GST Registered Company)

Read more at: https://www.caclubindia.com/experts/browse.asp?mode=resolved
XYZ PVT LTD (GST Registered Company)

Read more at: https://www.caclubindia.com/experts/browse.asp?mode=resolved
Replies (1)

If the at the time of sale it was already decided for such discount then ITC needs to be reversed by recipient since the supplier will reduce his supplies along with GST liability

 

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