TaxTMI 
TaxTMI 
TaxTMI 
GST on gross or discounted and actual price of supply
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....ST on gross or discounted and actual price of supply <br> Query (Issue) Started By: - DEVKUMAR KOTHARI Dated:- 21-11-2025 Goods and Services Tax - GST <br> Got 4 Replies <br> GST<br> <br> 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 s....
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....ale 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 ....
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....or Rs.700 --Reply By: Sadanand Bulbule The Reply: Dear Sir You are absolutely at the right page. In your example, assuming the discount is given at the time of billing and clearly invoiced, GST should be on the actual charged amount (Rs,700), not on the gross amount of Rs. 1000/- Refer: Section 15 & CBIC Circular No. 251/08/2025-GST dated 12/09/2025. --- Sub-Reply By: DEVKUMAR ....
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....KOTHARI The Sub-Reply: Thanks Mr. Sadanand Bulbule. I also think that simple membership of club will not be a reason to levy GST on pre discount amount because a member of club has no say in management except voter in General Meetings of the club. and proportion of voting right is very nominal say 1/ 2500, Even if any member who is also in executive committee will be eligible for GS....
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....T on post discount amount because in such case also discount is allowed as a member having senior citizenship and not because of being a member of executive committee. In case any discount is allowed to member of executive committee, in that capacity, then only perhaps fair market value can be applied on the basis of transactions at arms length, Let us share and do brain storming for learnin....
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....g in team manner. Regards Dev Kumar Kothari --- Sub-Reply By: Ganeshan Kalyani The Sub-Reply: I subscribe to your view, Sir. --Reply By: Sadanand Bulbule The Reply: Dear Sir Given the Kerala High Court's 2025 judgment in Indian Medical Association case restoring the doctrine of mutuality, a strong argument exists that GST should not apply on club-member transactions, and in any case valuatio....
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....n should be only on the post-discount amount when discounts are membership-based and not linked to management control. 2025 (4) TMI 872 - KERALA HIGH COURT 2024 (7) TMI 1448 - KERALA HIGH COURT Careful documentation + legal opinion can further solidify this defensible position while keeping compliance risk low. Warm regards <br>***<br> Discussion Forum - Knowledge Sharing....
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