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GST on Scheme Discount

CARadhikaBhinde (proprietor) (68 Points)

27 May 2019

Is GST applicable of Scheme discount received at the end of the year through credit note from suppliers?????

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6 Replies

CA Monika Motta (Partner) (1219 Points)
Replied 27 May 2019

yes if it is agreed in the agreement that scheme discount will be provided, then the person who received the credit note should reverse ITC and the suppler can reduce Outward taxable to the extent of credit note issued

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pritesh (CA Final student) (7101 Points)
Replied 27 May 2019

Wheather gst is charged on credit note?

CARadhikaBhinde (proprietor) (68 Points)
Replied 28 May 2019

pritesh (CA Final student) (7101 Points)
Replied 28 May 2019

Then you have to reverse as per section 16

Krishna Shinde (120 Points)
Replied 07 June 2019

If discount received by composition dealer then what to do

CA Monika Motta (Partner) (1219 Points)
Replied 07 June 2019

if it's year end discount recieved by way of financial credit note, then no need to reverse ITC, as supplier will not reduce his output tax liability to the extent of financial credit note