Suppose Company sells a car to a dealer for ₹ 700000 and the dealer in turns adds profit ₹ 50000 and sells it to customer for ₹ 750000.... Here the company asks the dealer to entertain a discount of ₹ 60000 to customer so that the final price charged to customer is ₹ 690000 (i.e. 750000-60000).
Question arises at what amounts will the gst be charged by the company to dealer and by the dealer to customer...???Is company liable to issue credit note to dealer or dealer will have to pay gst to company on ₹ 700000...???
Company Issues Credit Note for Discount, Reducing GST Liability Based on Post-Discount Transaction Value A company sells a car to a dealer for 700,000, who then adds a profit of 50,000 and sells it to a customer for 750,000. The company requests the dealer to offer a 60,000 discount, reducing the final price to 690,000. The discussion focuses on GST implications: the company should issue a credit note for 60,000, reducing its GST liability to 640,000. The dealer will pay GST on the reduced customer price of 690,000. The consensus is that the company's GST should be based on the post-discount transaction value. (AI Summary)
Goods and Services Tax - GST
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