Gst on sale of car

[Asked by Guest]

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...???

AI Summary

GST on discounted supply: credit note by seller and input tax credit reversal by dealer ensures tax on reduced sale price.
The company issues a credit note for the discount amount to the dealer, reducing its taxable supply value to the dealer; the dealer must reverse or proportionately reduce the input tax credit claimed on the higher purchase price and remit GST on the reduced taxable value when supplying to the customer, so that tax incidence reflects the final price paid by the end-customer.