Gst Reply fast Plz

If I purchase goods for 100000 n sold it for 105000 but the purchaser to whom I sold the goods for 105000 know that i purchased it for 100000 so he demands additional discount of 2500 that is the part of profit. then what's the treatment for this in Gst. if bill is already generated n eway is generated for 105000.
Replies (13)

 Issue a credit note of Rs. 2,500/- against sale invoice for decrease tax liability.

But no itc is provided for this amount of 2500

If You have charged Sale Amount 1,05,000 + GST Amount on Sale Invoice. now for giving discount you should issue credit note 2,500 + GST Amount or you can use reverse calculation method for giving discount 2,500/-.

It will decrease your tax liability.

But at the same time my stock will increase bcoz of credit note and in actual discount will not effect the stock.and what is reverse calculations

Okay, This solution was useful for service sector.

In your case, If you want to pay 2,500/- as discount then you can ask him for invoice, which will be generated by him. if he issued invoice of Rs. 2,500 + GST, then you will pay that amount & avail ITC.

Reverse calculation means Rs. 2,500/- is GST included value.

Invoice for discount.howz it's possible.

It will be treated as his other income & you will booked as indirect expenses. 

And if he issue invoice then my stock will increased by that amount

This invoice would be related to service not goods. So, Stock will not increase.

Is there any specific mentioning in the invoice regarding service as I m supplier of goods anly

Yes, HSN Code will be mention on Invoice accordingly. Your client will generate that invoice & you will pay that amount.

Yes, HSN Code will be mention on Invoice accordingly. Your client will generate that invoice & you will pay that amount.

Hsn code using in sale of goods...


@ Jyoti Narang.,

No more problem. You just give credit note with decrease of the items value

or

Just keep calm and receive the payment after less 2500. You will adjust the amount as discount in your books also to buyers end...

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