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discount

15 July 2017

sir I am deducting discount from my suppliers bill without disturbing GST AMOUNT in this case will i have to take credit note ?

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10 Replies

VJ Hebbar (Asst. Manager) (529 Points)
Replied 15 July 2017

If the Discount is mentioned in the invoice the GST can be calculated on post discounted Amount.

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Narayan Shivhare (204 Points)
Replied 15 July 2017

you have to send debit note to your supplier with discount amount and GST ON IT,, U CAN NOTE ALLOW TO MODIFY INVOICE OF YOUR SUPPLER AS PER RULLES OVER WRITING NOT ALLOW

Mahesh Sarda (173 Points)
Replied 15 July 2017

Sir GSTon discount? At what rate? It is cash discount for early payment

VJ Hebbar (Asst. Manager) (529 Points)
Replied 15 July 2017

It does'nt matter... For E.g., If the Invoice is for 1,000/- and the seller or service provider gives 5% discount (Discount mentioned in Invoice) then the GST will be applicable on 950/-.

Mahesh Sarda (173 Points)
Replied 15 July 2017

discount not mentioned in invoice e.g 1000 rs goods 5 % GST total value 1050. as I'm paying in 8 days I m getting 2% discount . debit note of rs 20 .

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VJ Hebbar (Asst. Manager) (529 Points)
Replied 15 July 2017

then yes you need to take it.

Mahesh Sarda (173 Points)
Replied 15 July 2017

GST on discount on GST input or output

Narayan Shivhare (CA) (64 Points)
Replied 15 July 2017

Entry at the time of purchase purchase. Dr 1000 Gst Dr 50 Vendor cr. 1050 At the time of payment Vendor Dr 1050 Disc cr 19 Gst. Cr 1 Cash/bank 1030 Gst ac also vifircate into CGST AND SGST.

Narayan Shivhare (CA) (64 Points)
Replied 15 July 2017

Entry at the time of purchase purchase. Dr 1000 Gst Dr 50 Vendor cr. 1050 At the time of payment Vendor Dr 1050 Disc cr 19 Gst. Cr 1 Cash/bank 1030 Gst ac also vifircate into CGST AND SGST.