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GST Effects on Purchase Discount

Nashik R Vaishnani (Accounts Manager) (43 Points)

21 April 2018

Dear Experts

We are received discount on our purchase, in this case some vendors not charged GST in Discount Note..

We have to reverse GST ITC on purchase discount or not?

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5 Replies

souvikghosal007@gmail.com (38 Points)
Replied 21 April 2018

if vendor charge gst after discount then it's not as per rule. you just follow the bill of the vendor. but when you bill someone first charge output gst and then provide trade discount

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 21 April 2018

It depend on your terms with vendor , but discount if shown in bill should be after gst.
so , as to me do what ur vendor does

C R RADHAKRISHNAN (ACCOUNTANT) (210 Points)
Replied 21 April 2018

we are registered dealer, if we purchase teak wood from gudur from unregistered person (i.e. land lord). by using e-way bill. can we take igst or not.

C R RADHAKRISHNAN (ACCOUNTANT) (210 Points)
Replied 21 April 2018

we are registered dealer, if we purchase teak wood from gudur from unregistered person (i.e. land lord). by using e-way bill. can we take igst or not.