GST On Discounted M.R.P.

There is no MRP concept in GST w
e have to pay GST on transaction value itself which is the invoice value.

According to the Provision of Section 15(1) of the CGST Act 2017, GST is levied on the "TRANSACTION VALUE" of the Supply of Goods or Services or both.

By virtue of Section 15(2) of the CGST Act 2017, the TRANSACTION VALUE includes all types of taxes and duties excluding CGST, SGST, UTGST, IGST, CESS.

Further, as per Section 15(3) of the CGST Act 2017, "Discounts given before or at the time of supply will be allowed as a deduction from transaction value" and should be duly recorded in the Tax Invoice.

Hence the shopkeeper is absolutely right regarding the GST collection.

Mathematically :

Amt actually Paid/Payable ( after giving the effect of Discount ) : Rs. 734.

CGST @ 2.5% on 734 = 18.35/-
SGST @ 2.5% on 734 = 18.35/-

Total Invoice Value = Rs. 770.7/-

Warm Regards.

But in other shop and even in mall also they are not collecting GST on discounted MRP