Dear Experts,
We purchase some machine parts from one of our supplier and he agreed to give annual discount based on our Purchase at end of every financial year.
For the year 2019-20 we purchased a machine spares worth Rs.45,25,881/- and as per his slab he agrees to give Credit Note @ 4.5% on his sale value.
But he is giving Credit Note only for Rs.2,03,664=00 (4.5% of 45,25,881) and not charging GST.
My Query:
1) Is he suppose to charge GST on Discount Amount ?
2) Is it require to Reverse our GST Input Credit to the extent of Discount amount?
Kindly Clarify, Thanks in advance.
Regards,
Manjunath S
CAclubindia
