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Discount Under GST
i have query. lets say MRP of product 100. but we sell the good lets say 70. as per my knowledge, we have to charge GST on MRP THAT is 100+ 18(GST). but we received 70+18(gst)=88. My point is that how we adjust the 30 rs in Books of accounts.
Replies (1)
Mr. Ashish,
GST is leviable on transaction value and not on MRP.
Tramsaction value is defined u/s 15(1) and excludes the discount specifically provided in tax invoice. (Section 15(3)).
Therefore, in your case GST is leviable on Rs. 70 and not on Rs. 100 (MRP).
So GST will be 70*18%= 12.6/-
Regards
GST is leviable on transaction value and not on MRP.
Tramsaction value is defined u/s 15(1) and excludes the discount specifically provided in tax invoice. (Section 15(3)).
Therefore, in your case GST is leviable on Rs. 70 and not on Rs. 100 (MRP).
So GST will be 70*18%= 12.6/-
Regards
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