TaxTMI 
TaxTMI 
XYZ is issuing invoice for the supply of goods and charging full GST on the full value of the invoice. At the bottom of the invoice, a remark is given as ‘if payment is received within 7 days, 2% discount will be given’. Can XYZ subsequent to supply issue credit note with GST to the customer for 2% discount if the payment is received within 7 days and reduce his GST liability in that month to the extent of the GST on 2% discount shown in the credit note?
Discount after Supply
28 Dec 2018 
7 Replies 
1379 Views Asked by
Conditional discount under GST: credit note allowed if pre established and ITC reversed, with documentary linkage required.
Discounts recorded in the invoice at or before the time of supply, or established by an agreement at or before supply and linked to invoices, may be adjusted post supply by issuing a credit note and reducing tax liability, provided the recipient reverses input tax credit attributable to the discount and proper records link the credit note to the original invoice. (AI Summary)
Discounts recorded in the invoice at or before the time of supply, or established by an agreement at or before supply and linked to invoices, may be adjusted post supply by issuing a credit note and reducing tax liability, provided the recipient reverses input tax credit attributable to the discount and proper records link the credit note to the original invoice. (AI Summary)