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Gst on discount

pritesh (CA Final student) (7101 Points)

30 November 2018

discount known at the tym of sale ..but it cannot be link to relevant invoice ( due to scheme discount) .. wheather itc need to be reversed or not..

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 30 November 2018

No , the GST not attract .

As per section 15 CGST Act : Both the condition should satisfy 1. Known at the time of supply 2. Can link to relevant invoice. Hence no GST attracts

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pritesh (CA Final student) (7101 Points)
Replied 30 November 2018

k tq pankaj rawat ji

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 30 November 2018

@ Vishesh

As per Sub section (3) of Section 15 CGSt Act : The value of supply shall not include discount if

[i] such discount is established in terms of an agreement entered into at or before the time of such supply AND specifically linked to relevant invoices;

Hence if both the condition is fulfilled then only GST is livable on Discount

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