GST on Discount

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....ST on Discount<br> Query (Issue) Started By: - Vivek anandhan Dated:- 6-4-2019 Last Reply Date:- 11-4-2019 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>Dear Experts We are receiving discount from our principle supplier following manner 1. Cash discount At the time of supply of goods with following points a. While making payment with in three days from the date of Invoice, our supp....

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....lier giving discount 0.25% b. Discount applicable on total invoice value c. Payment will be settled after adjustment of discount for the same invoice d. GST worked out entire value without considering reduction of cash discount e. Rate of cash discount has been mentioned on the invoice itself. 2. Post supply discount received from supplier with following points a. After purchase of goods f....

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....rom Supplier, we are getting discount based on Performance/volume/Special Price approval/Target Incentive b. It is no were recorded in the invoice c. Credit note will be issued in our favour without considering GST d. This discount amount will be adjusted in another supply invoice We are availing full GST credit based on the supply Invoice without considering of the above two type of discount....

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.... received from our principle supplier. Kindly clarify whether we required any ITC reversal to the extend of discount received. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: If there is an agreement between the parties as to the discount then GST is not attracted for such discounts. The invoice shall indicate the nature of discount. Reply By KASTURI SETHI: The Reply: Reversal of ITC is req....

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....uired in view of the scenario explained by you. Reply By KASTURI SETHI: The Reply: Also go through the latest decision of AAR, Tamil Nadu reported as 2019 (3) TMI 928 - AUTHORITY FOR ADVANCE RULING, TAMILNADU Applicant : MRF Ltd. Decided on 22.1.19.<br> Discussion Forum - Knowledge Sharing ....