Party purchased raw material at say Rs. 100/- but later on it was decided that rate should be Rs. 98/- and matter settled at Rs. 98/-. But supplier did not issue any Credit Note and the purchaser treated difference of Rs. 2/- as other income. GST effect was not given on this difference of Rs. 2/-. Pl. Comment.
Menu
Whether GST on Discount?
Replies (3)
What about GST charged in the invoice?
Hence their will be no effect on goods and purchase value will be 100 only as per inventory base and the 2 rs discount would be treated as indirect income. No effect on purchase rate.
Gst can be reduced only if
1 Discount was incorporated in invoice, or
2 At time of supply there was agreement for such discount (i.e To be provided at some later stage on occurrence of event or fulfilment of conditions)
Since by your stated facts it doesn't fall in either of points therefore gst cannot be reduced
only option is credit note
1 Discount was incorporated in invoice, or
2 At time of supply there was agreement for such discount (i.e To be provided at some later stage on occurrence of event or fulfilment of conditions)
Since by your stated facts it doesn't fall in either of points therefore gst cannot be reduced
only option is credit note
Recent Topic
- Composition scheme
- Input tax credit under igst under insurance compan
- ITR Form to be used
- CGAS account Holder Deceased
- ITR form suggestion
- Post office KVP income.
- Free GST invoice tool I built for my practice R
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
Related Topics
CAclubindia
