GST on gross or discounted and actual price of supply

[DEV KUMAR KOTHARI]

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

AI Summary

Club membership discounts: GST applies to the post discount billed price when discount is given at billing and invoiced.
Valuation for GST depends on discount timing and nature: discounts given and invoiced at billing permit valuation on the post discount charged amount, supported by Section 15 and CBIC Circular No. 251/08/2025 GST. Membership based discounts that do not arise from managerial control are treated as ordinary discounts and taxed on the post discount price; non arm's length or officer linked benefits may require valuation at fair market or arm's length value, and the doctrine of mutuality may inform defenses for member transactions.