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regarding discounts

10 July 2017

i am selling cementand paints
these companies issue bill of high rates for example: cement companies issued a bill of ₹340 and the cement sold lower of this price like cement sold to customer at 330rs and company should refund me discount after that.
then how should i issue my bill to customer as company is charging more tax
can i issue bill for rs 330 or more

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10 Replies

VJ Hebbar (Asst. Manager) (529 Points)
Replied 10 July 2017

Is the company selling you the Cement and Paints at the rate of 330/- where the face value is 340/- then they'll be taxing on 330/- where you will be liable to tax on 340/-. The difference amount in tax should be paid by you.

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Aggarwal Marble (16 Points)
Replied 11 July 2017

sir the company is charging tax on 340/-
but the actual landing of my product is 330/-

VJ Hebbar (Asst. Manager) (529 Points)
Replied 11 July 2017

He cannot charge like that after the GST. Even if he does then he has to show it in the Invoice.

Aggarwal Marble (16 Points)
Replied 11 July 2017

they are charging at 340/- and after a month give discount

Aggarwal Marble (16 Points)
Replied 11 July 2017

they are charging at 340/- and after a month give discount

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VJ Hebbar (Asst. Manager) (529 Points)
Replied 11 July 2017

So that means the MRP is 330/- where are they are charging 340/- and later on gving back 10/- as discount isn't it?

Aggarwal Marble (16 Points)
Replied 11 July 2017

mrp is not 340/- the billing is 340/-
selling rate is 330/-

VJ Hebbar (Asst. Manager) (529 Points)
Replied 11 July 2017

Well in that case you can charge 340/- and taxable on that amount. here as you have already paid tax while purchasing from companies so you'll be liable to pay only the difference amount.

For e.g..
Company charging 330 + 28% GST =

VJ Hebbar (Asst. Manager) (529 Points)
Replied 11 July 2017

For e.g..
Company charging 330 + 28% GST = 422.40/- rounding off -0.40 comes to 422.
You are charging 340 + 28% GST = 435.20 rounding off -0.20 comes to 435.

here while purchasing you have paid 92.40/- GST and while selling you charged 95.20/- GST. So you'll be taking 92.40 as input and 95.20 as output and the difference amount 2.80/- which u'll be paying.