gst on bill discounting business.

[pawan kumar]

A sales a goods to b of rs. 200000 on which gst is 10000. A discoubted this bill from c and received immidiate payment and later on c issued bill to b. is bill discounting business allowed in gst...

[Rajagopalan Ranganathan]

Sir,

In my opinion it is a taxable service and liable to gst. Gst is payable on the discount amount received/accrued.

[Himansu Sekhar]

Prima facie it appears. But needs deeper thought.

AI Summary

GST on bill discounting treated as taxable service; tax payable on the discount amount when received or accrued. Bill discounting constitutes a supply of services under GST, and the consideration-the discount charged by the financer-is the taxable value; GST is payable on the discount amount when it is received or accrues.