Discount
This query is : Resolved
14 May 2018
A dealer gives cash discount on its invoice as per direction of company.The cash discount so given is reimbursed by the company later.In such scenario the cash discount will be charged before charging gst or after charging gst?The dealer gives discount after charging gst in order to higher tax compliance and does not reduce the gst on reimbursement so received from the company.Is the practice is correct or not?
14 May 2018
To my understanding, there are two independent transactions. One from company to dealer and another from dealer to consumer. When the company is selling goods to the dealer, it would charge as per agreed price. As discount is not quantified at that time, GST would be payable on full transaction value. Further, when the dealer is selling to the consumer, the discount is known and it is specifically brought out in invoice - in that case GST would not be payable on discount value. Please refer section 15 of CGST Act.
14 May 2018
Please explain with an example.
15 May 2018
Discount given at the time of supply by distributor to retailer,billing made as value--100000 cgst-2500,sgst-2500 total value-105000.00 less discount--10,000.00 Net invoice value--95,000.00.The discount so given is reimbursed by the manufacturer to the distributor.Is the billing process is correct?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
