How trade discount is treated in GST is it a service item .
what is the SAC
cod and what is the tax applicable
9 Replies
RAJA P M
("Do the Right Thing...!!!")
(128096 Points)
Replied 28 February 2018
Trade Discount is directly account to the Party. GST not applicable.
Alok Sharma
(52 Points)
Replied 01 March 2018
Section 15 of the CGST Act and
Determination of Value of Supply, CGST Rules, 2017 contains provisions related to valuation of supply of goods or services.
Determination of Value of Supply, CGST Rules, 2017 contains provisions related to valuation of supply of goods or services.
Alok Sharma
(52 Points)
Replied 01 March 2018
Discounts like Trade discount, Quantity discount etc. are part of normal trade and practice. So, these are allowed to be excluded while determining taxable value.
VINEETH.R
(FINANCIAL ACCOUNTANT)
(458 Points)
Replied 01 March 2018
Yu don't want to bother about the gst in trade discount. 
Aashish Sachdeva
(839 Points)
Replied 01 March 2018
you mean Gst is applicable on MRP and discount given in directly party ladger without GST .....
Alok Sharma
(52 Points)
Replied 02 March 2018
You are interpretating it wrongly.
MRP
less: Trade Discount / Quantity Discount
= Taxable Value of Supply
MRP
less: Trade Discount / Quantity Discount
= Taxable Value of Supply
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