discounts in gst

[giri gattupalli]

respected sir

whether turnover discounts and cash discouts can be issued to aretailer by whole saler with out effecting gst or not pleases discuss

thanking you

[KASTURI SETHI]

Yes, you can. First calculate tax on transactional value (assessable value) in full and, thereafter, give/compute discount. In this way, both discounts will be from your pocket. Govt. is concerned with full tax. A problem arises only when you reduce the taxable value of outward supply by way of discount from transactional value.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir. The charging of GST on credit note is optional.

AI Summary

Wholesalers Can Offer Discounts Without Affecting GST if Full Taxable Value is Maintained Before Discounts A query was raised regarding whether wholesalers can offer turnover and cash discounts to retailers without affecting GST. One response explained that discounts can be given after calculating tax on the full transactional value, ensuring the government receives the full tax amount. The issue arises if the taxable value is reduced by the discount. Another participant agreed, noting that charging GST on a credit note is optional. Both responses emphasize maintaining the full taxable value before applying discounts to comply with GST regulations.