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Gst on special discount

Prashant Balkrishna Thanekar (Accounts Manager) (173 Points)

23 March 2018

Dear all,

We have received special discount on purchases from the supplier through credit note for the period of july 17 to feb 18 . He has not shown GST Separately in his credit note & given discount on basic price.

My question is it necessary to pay GST to us on special discount received

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5 Replies

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 23 March 2018

I think you need to reverse the itc amount according with that special discount amount.

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 23 March 2018

No...
It's not a supply related Credit. It's based on revenue account. No need atract GST. So, Only they will give the Basic values of the Sales.

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Prashant Balkrishna Thanekar (Accounts Manager) (173 Points)
Replied 24 March 2018

I also thinking the same but was not sure

Thank you for your valuable answer

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 26 March 2018

Originally posted by : RAJA P M
	No... It's not a supply related Credit. It's based on revenue account. No need atract GST. So, Only they will give the Basic values of the Sales.

How can we treat like that...? If there is some discount is allowing the value of supply would get decrease, so that it will definitely effect the ITC claimed by the party. I think they need to reverse that excessive ITC... Kindly let me know about this case...

Mukesh Bajaj (Chartered Accountants) (22 Points)
Replied 05 April 2018

How a credit note for entire year transactions can be issued without linking the same with an invoice? Pls check if the credit note issued to you is as per GST provisions or not?