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GST on Discount Received from Cement Manufacturer, Goods and Services Tax - GST |
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GST on Discount Received from Cement Manufacturer |
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Proprietorship business concern has been registered under GST Act and business of wholesales cement purchasing from cement manufacture. This proprietorship business concern received large amount discount from manufacture without effecting any GST is correct or wrong? If wrong who is liable for GST invoice of discount and payment of Tax? Posts / Replies Showing Replies 1 to 1 of 1 Records Page: 1
Reply cannot be given in the form of 'YES" or 'NO'. It appears that you have got post-supply discount. Such discount can be excluded from the taxable value, if the following conditions are satisfied:- (a) Discount must be prior known to the buyer in the form of a pre-supply agreement to be executed between the supplier and the buyer/receiver. (b) Such discount should be correlatable with the relevant invoices. (c) ITC attributable to such discount is reversed by the buyer/recipient. . If you do not fulfill the above conditions, practice adopted is wrong. The supplier has to first rectify the procedure, if above mentioned conditions are not met with. Page: 1 Old Query - New Comments are closed. |
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