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

GST on discounts: charge tax on full transaction value; post-sale discounts treated as seller's expense, do not reduce taxable value. Tax must be computed on the full transactional (assessable) value; discounts given thereafter are treated as borne by the supplier and do not reduce the taxable base. A problem arises only if the supplier reduces the taxable value at the time of charging tax by factoring in the discount. Charging GST on a credit note is optional.