25 March 2022
Dear Sir, We have raised some invoices to few Parties on one condition that on receiving the Invoice & Material, they will make the payment after deduction of Cash Discount. But this Condition was not disclosed in the invoices raised to the above parties. Now, I want to know for Balancing the Ledger of such parties i need to raise Credit Note but What will be the GST Implications on such Credit Notes. I have elaborated my query with example - Suppose we have raise a Invoice of Rs. 20,00,000/- (Incl. of Tax) to a party and such party made a payment of Rs. 19,60,000/- after deducting Cash Discount of Rs. 40,000/- now Rs. 40000/- in our books is still outstanding Now i want to know , i) Can we raise Credit note of Rs. 40000/-(Incl. of GST) & whether Customer need to reverse the GST Amount on Rs. 40000/- ii) Any other option like Discount & GST implication on such Discount.
CAclubindia
