Q. Whether reversal of cash discounts attracts CST

hi i have today i small doubt.

the question is

Say a bill in respect of Inter state purchase:

 

Gross value 1,00,000

cas h discount 10,000

Net amount  90,000

CST charged is 2% - 1,800

Total Bill Value - 91,800

Note: cash discount is subject to payment made within 15 days of the bill


The accountng entry is made for Rs.91,800

in case if the payment was not made within 15 days, the cash discount will gets reversed meaning it will be charged. But what about the CST whether the supplier should collect or not.

 

awaiting members to share/solve.

Replies (1)

Cst will be charged on the total bill value.. cash discount is just a deduction from the amount arrived after charging CST

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