Home Forum Goods and Services Tax - GST Month 11 2019 2019 (11) This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
Discounts in Receipt Vouchers - Goods and Services Tax - GSTExtract Dear Sirs, One of our clients is into the business of real estate development. They take advances from customers against future delivery of residential flats. As per their verbal agreement with the customers, 50% of GST Portion (6%i.e. half of 12%) is borne by them as a discount i.e. say if they receive advance of 100, then Taxable value is 89.28 and CGST/SGST portion is 5.36 each. They however, give customer credit of 94.64 (89.28+5.36) and 5.36 being discount is expensed off. The accounting entry of the same is as under: Bank Dr. 100 Discount Dr. 5.36 To Customer 94.64 To GST Payable 10.72 Now, when they issue receipt voucher against the same, there is no field allowable as per CGST rules to allow discount or any other similar deduction. Then how should the same be given effect to within the purview of the law.
|