Discount under GST

[Kamdev Senapati]

Dear Experts,

In some cases we have received short payment from customers due to short quantity/rate difference.

These thing comes to notice after received the payment.

Customers are not giving us any debit note.

My Quarry is:-

For accounting purpose shall we book the short payment under discount head....

Please advise....

[Vamsi Krishna]

Hi

You have to book the difference under Credit note head and reverse the GST liability to the extent of shortage/damaged goods.

Its better to inform your customers to give you immediate intimation about the details of such deductions so that you will get your GST liability reduced in the same month.

[CSSANJAY MALHOTRA]

Merry Christmas Sh. Senapati ji,

Receipt of short payment due to varied reasons is a regular feature in Industry and don't get frustrated.

You have the option to raise Credit Note with or without GST as per your business model. If you raise Credit Note with GST, your tax liability in return will get reduced and the entry will be auto populated as Debit Note in your Customers GSTR-2 return. Credit Note can be for discount.

The above addresses your concern and the credit note raised by you becomes Debit Note in Customer Books.

 

 

 

 

 

AI Summary

GST adjustment for short payments: issue a credit note to reverse tax liability and notify customers for return reconciliation.
Short payments due to short quantity or rate differences should be accounted for by issuing a credit note and reversing GST to the extent of the shortage; a credit note may be raised with or without GST, and where GST is adjusted the supplier's liability reduces and the entry appears as a debit note in the customer's return to enable matching and reconciliation.