Accumulation of itc

[HEMANTHREDDY ONTEDDU]

A buys cement for RS 100. Gets at cash discount of 10 if he pays in 5 days and some other unannounced discounts. A sold the at ₹ 80 A got cash discount. And also got some other unannounced discounts of RS 20. Can A get the gst refund for unannounced discounts.

[KASTURI SETHI]

Discount is allowed from transaction value i.e. prior to payment of GST. It must be known prior to supply of goods or services. So situation of refund will not arise.

[Ganeshan Kalyani]

I agree with the opinion of Sri Kasturi Sir. Discount on the face of the invoice and the one which is know before entering into the transaction and that should be supported by agreement with discount clause in it.

[subramanian vijayakumar]

Yes I endorse Sethy sir views

AI Summary

Discount on transaction value must be known before supply to reduce GST value; unannounced discounts do not permit input tax credit refund. Discounts reduce the transaction value for GST and affect input tax credit only when they are known before supply and reflected in the invoice or backed by an agreement; unannounced or post supply discounts do not adjust taxable value and do not give rise to refund or adjustment of input tax credit.