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ITC REVERSE ON DISCOUNT RECEIVED

18 November 2023

respected expert please guide if I have received a cash discount on making timely payment to our creditors. then "can I have a liability to paid gst tax on discount"?

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3 Replies

Manish (CA) (1174 Points)
Replied 18 November 2023

No GST on cash discounts. No ITC reversal etc.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 November 2023

No, GST not applicable.
So, You don't want pay GST for the discount receipts.

Imthias ahamed Kormath (910 Points)
Replied 19 November 2023

Gst is applicable, if conditions fulfilled by the buyer in timely.
Discount allowed under gst before taxable value, then any discount allowed only restrictions or any valid conditions. So,the supplier issue credit note for claim input tax on that goods invoice.the buyer shown it incentive amount in the income side of profits loss account.