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Gst RCM

sunil barad (student) (87 Points)

14 August 2017

GST IS Applicable on cash discounts given if it exceeds ₹5000. RCM applicable???

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4 Replies

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 15 August 2017

first of all I cannot see any possibility of rcm being involved in cash discount......

can you give me little detail of the type of transaction you are talking about?

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sunil barad (student) (87 Points)
Replied 23 August 2017

suppose goods supplied for Rs 500000, debtors paid 490000 , than 10000 is cash discount,

sunil barad (student) (87 Points)
Replied 23 August 2017

gst to be charged on 10000 under reverse charge

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 24 August 2017

if discount given at the time of issuing of invoice itself than there will be no gst on discount.....but if discount given on a date latter than the issue of invoice (and there is no prior agreement for such discount) than gst is leviable....but if there is prior agreement for discount than no gst..