My client has received discounts for two years(18-19 and 19-20) in the current year(19-20). Usually my client will get year end discount in total on purchases made from supplier.
What is the treatment of discount received for two years in the month of Feb, 2019. How to deal with it while filing GSTR 1 for the month of February.??
5 Replies
Sumanta Ghosh
(7 Points)
Replied 09 March 2020
There will be no impact on on GST. You Can file your GST returns normally..Trade discount usually impact the financial statement. Hope this helps.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 09 March 2020
As per Section 15(3)(b) of CGST Act : GST is applicable on discount when such discount is established an agreement before supply & can link to relevant invoices.
But as your query sounds it's trade discount (invoices cannot be link) hence No GST attracts. So need to report in In GST returns .
For more details kindly refer Circular 92/11/2019 GST
But as your query sounds it's trade discount (invoices cannot be link) hence No GST attracts. So need to report in In GST returns .
For more details kindly refer Circular 92/11/2019 GST
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 09 March 2020
***Hence NOT required to report in GST Return
Sivaramaraju G
(Learner)
(2398 Points)
Replied 10 March 2020
Can trade discount be received even after purchases.?? Normally trade discount will be allowed at the time of purchase only right??
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 10 March 2020
Yes Trade discount can reced after purchase
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