post sale discount for cement

[Asked by Guest]

Dear Sir,

1. My Client (Whole sale & Reseller) purhcase cement bag from one famous brand company ₹ 300+GST 28% at the time of purchase of Invoice,my client resale to customer ( Unregistered and end user) rate is per bag ₹ 305+GST 28% after sale they have received discount (Credit note) ₹ 20 per bag + GST 28% from company instructed to my client above discount amount less your input

but client is sale is completed and GST is payable for ₹ 1.40 @ 5 profit cost

Now they will be adjusted for above GST for ITC they have to pay GST additional ₹ 5.60 @ ₹ 20 discount

In this situation how to advise my client?

1.how to file GSTR 3B

2.how to entry passed in books

3.how to make sale bills and credit note entry post the books

and resale

Kindly advise my respected seniers

[DR.MARIAPPAN GOVINDARAJAN]

If there is any agreement made with your client for the post sale discount, then such amount is not liable to GST. You may issue credit note for the same.

[YAGAY and SUN]

You can raise a credit note.

AI Summary

Post-sale discount not liable to GST when agreed; document the reduction by issuing a credit note to adjust taxable value.
Where a post-sale discount is provided under an agreement, the discount amount is not liable to GST and a credit note may be issued to reflect the reduction in taxable value; the advisers recommended issuing a credit note but did not provide detailed GSTR-3B or bookkeeping procedures.