Discounts in GST Regime
JOHN BOSCO NIRMAL RAJ (Sr. Manager- Taxation in Shriram Group) (32 Points)
27 June 2017
what will be the transaction value when there is discounts
3 Replies
natarajan
(SM - Audit & Taxation)
(156 Points)
Replied 27 June 2017
Dear sir,
Discount offered in the invoice will not form part of the Transaction value; Meaning, the Gross Inv value Rs. 100000 and you have offered discount in the invoice Rs. 5000, then on Rs. 95000 only you have pay GST.
Under GST, Post sale discounts also eligible to reduce the GST Liability but few conditions of the contracts to be very clear to avail such discount.
hope it is clear
Vinay Garg
(Student cum businessman cum professional)
(859 Points)
Replied 27 June 2017
Discounts given before or at the time of supply will be allowed as deduction from transaction value. Such discounts must be clearly mentioned on the invoice.
Discounts given after supply will be allowed only if-
It is mentioned in the agreement entered into before sale
AND
input tax credit proportionate to the discount has been reversed by the recipient of the supply AND
It can be clearly tracked to relevant tax invoice
Discounts given after supply will be allowed only if-
It is mentioned in the agreement entered into before sale
AND
input tax credit proportionate to the discount has been reversed by the recipient of the supply AND
It can be clearly tracked to relevant tax invoice
JOHN BOSCO NIRMAL RAJ
(Sr. Manager- Taxation in Shriram Group)
(32 Points)
Replied 28 June 2017
Thanks Mr. Natrajan and Mr. Vinay
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