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100% Discount on Invoice

18 April 2018

If I will give 100% discount on my invoice. Should I do this and didn't charged gst on invoice as per section 15(3). Am I right?

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11 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 April 2018

no , u cant do so u have to charge GST

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Yogesh Choudhary (31 Points)
Replied 18 April 2018

Thanks Pankaj. It would be better if your answers include reference in act also i.e. where it has written.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 April 2018

Mr. Yogesh

Lets Say u are billing for rs. 100/- + gst 18℅ comes to 118 less discount 100% (on taxable value) net value of bill come to 18/- which u have to deposit as gst payable ( valuation rule as per section 15 cgst Act)
or
you can show the discount of Rs.118/- (bill vale comes to Nil) & has to reverse ITC on its purchase ( As per section 17(5) cant give free)

Yogesh Choudhary (31 Points)
Replied 18 April 2018

Sir, but I will bill like 100/- then less discount 100% and Net Taxable will be Nil because discount is allowed at the time or before the issue of invoice . Then no gst will be there as taxable value is nil.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 April 2018

Then u have to reverse the ITC on its purchase as in gst u cant give anthing free as per section 17(5)

Note. In anyway u have depo. GST

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Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
Replied 25 April 2018

Yes. If you do not charge the GST on sale then you will have to reverse the GST which was used while purchase of the goods.

Sumesh Sobhalayam (Finance Manager) (36 Points)
Replied 25 April 2018

hope you got the point ..its better to have deposit gst with giving 100% discount than reverse the input tax

Sumesh Sobhalayam (Finance Manager) (36 Points)
Replied 25 April 2018

hope you got the point ..its better to have deposit gst with giving 100% discount than reverse the input tax

GST AUDIT (2 Points)
Replied 29 December 2021

But, where it has been written in GST Act or Rule when you do not charge gst then you should reverse ITC.

Parameswaran Thathamangalam (86 Points)
Replied 15 March 2023

I supied a water purification plant to my customer. It was invoiced and was included in GSTR1 for that month. However , while commissioning the plant, it was found that 50 litres more of ion exchange resin must be added again to get the desired result. I cannot invoice this to the recipient as it is my scope to get the result, for the quoted price.and material supplied. How I can handle this supply. Should I pay GST against this

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Niranjan Kulkarni (Individual) (27 Points)
Replied 11 February 2024

rather than giving it free and creating ambiguity, why not sell the product/ service for a promotional offer of Rs. 1 and then pay the GST on it also.