CHANGE OF GST RATE FROM 12% TO 5% AFTER DISCOUNT RATE

This query is : Open

CS and ACMA Raju lakhani (Querist)
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01 November 2017 Dear Querist, One Co. Have sale of readymade products of 5% & 12%. Above 1000 rate he charge 12% and below 1000 charge 5% as per gst rules. But after giving discount of 25% on overal bill rate of clubbed bill change. Now above 1000 rate after discount come to say as 990/-. Should Co. Charge 12% or 5%. Kindly tell.

RAJA P M

RAJA P M (Expert)
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02 November 2017 Charge GST 12% as follow... Items Rate - XXXXX GST 12% - XXXX Total - XXXX Discount (-) - XXXX (Basic Price only not on GST Tax)

B Vinay Reddy

B Vinay Reddy (Expert)
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02 November 2017 As per GST Valuation rules *If the discount is given before or at the
time of supply, and is recorded in the
invoice
Can be claimed as deduction from
transaction value
*If the discount is given after supply, but
agreed upon before or at the time of
supply, and can be specifically linked
to relevant invoices
Can be claimed as deduction from
transaction value
*If the discount is given after supply,
and not known at the time of supply
Cannot be claimed as deduction from
transaction value

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B Vinay Reddy

B Vinay Reddy (Expert)
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02 November 2017 I think discount will be allowed as discount from Transaction value and GST will be charged on discounted value

CS and ACMA Raju lakhani

CS and ACMA Raju lakhani (Querist)
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03 November 2017 Since bill contain both 5% & 12% rate product after that discount given on value, therefore 12% rate product come below 1000 rate. Receiver of goods told u charged mre tax. Kindly tell.