Many of our clients who deal in Cement, fertilizers and Pesticides receive cash and trade discounts from the supplier company in the form of Credit Notes charging GST.
My query is whether we should deduct the discount amount from the purchase and should show net ITC in GSTR-3B or add discount amount in outward supplies and should show in table no. 3 of GSTR-3B as we are showing in the credit side of the Profit and Loss A/c as other income in audited financial statements.
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Treatment of GST on cash and trade discount
Replies (2)
Quick Summary
Reverse the corresponding ITC in column 4(B)(2), ITC Reversed-Others, of GSTR-3B.
Discount is received from Suppliers, i.e it's relating to the Purchase by taxpayer, So, we should have to deduct the discount amount from the purchase and show net ITC in GSTR-3B.
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