SECONDARY DISCOUNT ADJUSTMENT

SIR,

LET SUPPOSE  A CO SUPPLY GOODS TO B AS FOLLOWS

BASIC PRICE          TAX          TOTAL       

100                         28%          rs128

B SUPPLY TO   AS FOLLOWS

BASIC PRICE          MARGIN         TAX    TOTAL

100                         RS 10          30.8(28 %)   140.80

now company ask b to reduce price by rs 20 and ask b to sell at rs 120.80

b will bill as follows

basic price   discount        net price   tax (28%)             total

110                15.62           94.38         26.42      120.80

(1) as per above b avail input of rs 28 and output of rs 26.42 

(2) co. is asking b to raise claim of rs 20 +gst 18% = rs 20 under business support service

 

is it ok  please clarify on urgent basis as this practise increase the  itc of b 

Replies (1)

As far as GST law is considered it is allowed to do so.

But since your ITC will get accumulated so from a business point of view it will result in blockage of your capital.

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