General whether , GST should be charged on gross price or actual price charged, after deducting discount allowed - discount may be for reasons like bulk sale, festive sale , birthday sale, anniversary sale or against points earned on earlier sale of good to same customer.
Specific- a club allows certain discounts to senior citizen members of club on certain days of week and on certain occasions. For example suppose foods and beverage at dining hall of club- gross charge is Rs.1000 after discount of 30 pc actually charged is Rs,700/- whether GST should be on Rs,1000 or Rs.700
GST on discounted club bills: transaction value under Section 15 applies only to price after eligible invoice discounts Under GST law, tax is generally chargeable on the transaction value, i.e., the actual price paid or payable after allowable discounts. Discounts given before or at the time of supply, and reflected on the tax invoice (such as bulk, festive, loyalty, or senior citizen discounts), are deductible from the value of supply. Therefore, where a club's menu price is Rs. 1,000 and a 30% discount is granted upfront and shown on the invoice, GST is leviable on Rs. 700, not Rs. 1,000. Post-supply discounts may be deductible only if conditions in the law and prior agreement are satisfied and the recipient reverses proportionate input tax credit. (AI Summary)
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