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Discount on sale

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SUMIT BADYAL

709 Points Posted on 09 December 2020

hi, the right way of giving a discount is on the taxable value and after that GST charged.

But we were given a discount on the total sale value. I.e sale value 1000
GST. + 120
Discount. - 200
is this right way.

Replies (4)

Quick Summary

This discussion clarifies how discounts should be applied in sales transactions, particularly concerning GST. The consensus is that discounts are typically applied to the taxable value before GST is charged. However, if the discount is on the retail price of finished goods, applying it to the total sale value (including GST) might also be acceptable in certain contexts.

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 09 December 2020

Yes. It depends if discount is on wholesale or retail price. Wholesale means, purchasing directly from a dealer like raw materials. If wall things have a tax base then, the above procedure you mentioned is correct.