QUARTERLY DISC RECD....HAVE TO PAY GST

This query is : Resolved

ATUL (Querist)
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21 October 2024
AS WE MAKE PURCHASES.....& ACHIEVED TAGET OF PURCHASES

PARTY HAS ISUUED......DISCOUNT A/C...CREDIT NOTE ..SAY 5 LAC...QUARTERLY>>>>WITHOUT CHARGING GST

GST OFFICER SAYS....YOU HAVE TO PAY.....GST ON DISCOUNT.....OR...YOU HAVE TO PROPOTIONATELY ....ITC TO REVERSED.....

WHAT IS WORKING FORMULA.......TO PAY GST ON.....NON-GST FINANCIAL TRANSACTIONS OF RS.20 LAC FOR FULL YEAR....FY-2020-21

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 October 2024 No ITC reversal required as seller issued credit note without GST.
It's commercial discount GST not applicable. GST official view not acceptable.
See the link for more clarification.
https://taxguru.in/goods-and-service-tax/sales-promotion-schemes-discounts-gst-clarification.html