cash discount whether gst applicable

[satbir singhwahi]

Sir

On realisation of sales, cash discount is given to customers. Whether GST is applicable on discount as expence.

AI Summary

GST Applicability on Cash Discounts: Section 15(2) of CGST Act 2017 Discussed; Reverse Charge Query Sparks Debate A discussion on the applicability of GST on cash discounts given to customers upon realization of sales. According to a response referencing Section 15(2) of the CGST Act, 2017, discounts are not included in the supply value if recorded in the invoice or linked to an agreement. A query was raised about GST applicability under reverse charge when discounts are recorded as expenses. One participant stated GST is not applicable, while another suggested it might apply if treated as an expenditure, inviting further expert opinions.