Can we reverse the out put tax liability when issuing cash discount?, Goods and Services Tax - GST

[RameshBabu Kari]

Q1- Can we reverse the out put tax liability when issuing cash discount?

Q2- Can we reverse the output tax liability when issuing credit note?

Posts / Replies

[KASTURI SETHI]

Not required as discount is allowed from transaction value subject to conditions laid down in Section 15 of CGST Act.

[Rajagopalan Ranganathan]

Sir,

Please refer to Section 34 of CGST ACT, 2017 and rule 53 of CGST rules, 2017.

[Himansu Sekhar]

If you issue the credit note, the liability will be reduced only if the receiver reverses the proportionate credit. Discounts before sale I.e when it is known before supply will not be subject to gst. Kasturi sir and ranganathan sir given the correct view.