GST on Discount Received from Cement Manufacturer

[chandan bera]

Proprietorship business concern has been registered under GST Act and business of wholesales cement purchasing from cement manufacture. This proprietorship business concern received large amount discount from manufacture without effecting any GST is correct or wrong? If wrong who is liable for GST invoice of discount and payment of Tax?

AI Summary

Wholesale Cement Business Clarified on GST-Free Discounts: Must Meet Pre-Agreed Terms and Reverse ITC for Validity. A proprietorship business in the wholesale cement sector queried about the correctness of receiving a large discount from a manufacturer without GST implications. The response clarified that such a post-supply discount can be excluded from taxable value if specific conditions are met: the discount must be pre-agreed, correlatable with relevant invoices, and the Input Tax Credit (ITC) attributable to the discount must be reversed by the buyer. If these conditions are not fulfilled, the practice is incorrect, and the supplier must rectify the procedure.