GST on discount

This discussion explores whether Goods and Services Tax (GST) is applicable on discounts received for early payment to a supplier. Generally, if the discount is clearly shown on the supplier's bill, it reduces the taxable value of the purchase, meaning you claim input tax on the lower, discounted amount. If the discount isn't itemised on the bill, GST is typically calculated on the full amount, and the discount itself doesn't incur GST.