GST IMPLICATION ON DISCOUNT

This query is : Resolved

mohan sehgal (Querist)
Follow

24 February 2024 INVOICE SAMPLE
Seller.....A
Buyer ...B TAX INVOICE

I. ITEM RMCTH......3nos. Rate 500 each 1500.00

Add.. GST 18% 270.00
Total
1770.00

Special Discount.................. 270.00

Amount Payble.................... 1500.00

Amount paid by B to A............Rs.1500.00

Query.....Whether the Buyer B has to reduce ITC of GST 18% on on Discount Rs.270.00 ??;
Here the seller A has not reduce any Gst liability of his own and deposited the full GST charged of Rs. 270.00 to the Revenue...
Please Resolve and Clarify....>THANKS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

26 February 2024 No need to reduce, as seller deposits full GST.

Message likes : 1 times

mohan sehgal

mohan sehgal (Querist)
Follow

02 March 2024 Sir,
The discount has been given by the Supplier on The Tax Invoice ,itself after charging gst on the original price and deposited the full gst and 2A also ...reflects the full TAX Amount....
INVOICE SAMPLE
.TAXABLE AMOUNT>>>Rs.5000
TAX........18%GST Rs. 900
TOTAL....................Rs.5900.00
Discount ....... Rs. 400.00
Grand Total..... Rs.5500.00
The Buyer paid Rs.5500.00 and the seller deposited full GST amount Rs.900.00......Whether ITC on RS 400.0 is to be reversed...

THANKS

Upgrade to CAclubindia Pro. Subscribe Now!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

02 March 2024 No need for reversal in such a case as 900 GST paid.