Cash discount & Turnover discount

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..... Cash discount & Turnover discount
Query (Issue) Started By: - Chhatra Jain Dated:- 24-9-2017 Last Reply Date:- 25-9-2017 Goods and Services Tax - GST
Got 7 Replies
GST
There is no agreement between supplier ABC Ltd. & recipient for cash discount but as and when funds are required direly by ABC LTD it allows cash discount and issues credit note for the cash discount plus GST. Is GST re .....

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..... quired to be reversed for this occasional cash discount . Allowing cash discount is not a regular phenomenon. Also what will be the position in case of Turnover discount allowed six monthly.by ABC Ltd. In this case ABC Ltd should issue credit note for the discount amount plus GST. Reply By Himansu Sekhar: The Reply: If you will not reverse the credit, his lowering of value through credit notes i .....

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..... s not allowed. Sec. 34 does not mandate your reversal, but it is linked with his reduction in tax. Reply By Himansu Sekhar: The Reply: Turnover discount and cash discount are given the same treatment under gst. Reply By Ramaswamy S: The Reply: No GST on discounts if shown in the invoice. If the invoice does not reflect the discount but provided subsequently, gst is not deductible. Reply By MA .....

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..... RIAPPAN GOVINDARAJAN: The Reply: I endorse the views of Shri Ramasamy. Reply By Chhatra Jain: The Reply: Sir What would be the position in case it is agreed between thé parties for cash discount and turnover discount before commencent of supplies? Reply By Ramaswamy S: The Reply: if agreed before, then it is to be shown in the invoice and the GST is payable net of discount Reply By .....

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..... Himansu Sekhar: The Reply: Please refer to sec 15(3)(b) . it has been written that if the discount is effected after sale and established in terms of agreement ........... And ITC ..... Has been reversed then such value will not include such discount.
Discussion Forum - Knowledge Sharing .....

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