26 August 2019
Mr.A supplies job working service to Mr.B. The Taxable Value is Rs 1,00,000 and GST - 9000+9000 So, Invoice Value is Rs. 1,18,000.
Now, Mr.B discounts this Invoice with the Bank and Bank makes a payment to Mr.A after deducting discounting charges of Rs.500. Net Amount Received by Mr.A on account of Mr.B is Rs. 1,17,500.
Can Mr.A raise a Credit Note for a value of Rs.500? What is the amount of Tax to be paid by Mr.A on GST portal : Rs.18000 or [Rs.18000 - (500*18%/1.18%)] = Rs.17,924
02 September 2019
As per Sec. 34(1) of CGST Act, 2017 a credit note can only be raised in case there is any deficiency in the service. In your case credit note cannot be raised as there is no deficiency in providing services. The bank has deducted certain amoun towards its charges for discounting.
GST on entire 1,00,000/- shall be paid to the govt ie., 18,000/-.
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