my supplier reducing discount from invoice value (taxable value+GST) instead of taxable value ..so is it correct to claim full ITC on taxable value...
tax value..1,00,000
gst @ 18%. ..18,000
invoice value.1,18,000
discount....10,000
they are removing discount from 1,18,000 after charging GST, how much ITC i can avail..18,000 or 16,200.. what supplier is doing correct or wrong
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DISCOUNT IN INVOICE
Replies (4)
You should always charge GST on net bill value.
As per section 15(3) (a) of the CGST act 2017 value of supply shall not include any Discount which is given before or at the time of such supply .
100000/- Value
- 10000/- Discount
-------------
on 90000/- GST @ 18% = 16200/-
please confirm with others also .
Supplier is wrong but if he has paid 18000 gst and it is reflecting is 2A what is wrong in availing It
GST to be discharged on Net Invoice value after Deducting relevant discounts. Thereby you can request the supplier to amend the invoice. If he is not agreeing to the same then you must avail the credit of ITC upto Rs 16,200/- only. Accounting must be done as per invoice received from the supplier, however, for GST computation ITC to be availed shall be Rs 16,200/-. You will have to keep a reconciliation showing ITC available as per GSTR2A Rs 18,000/- & ITC availed Rs 16,200/- , this shall be useful in future for GST Audits and filing of Annual Returns
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