Goods and Services Tax

CASH DISCOUNT/TRADE DISCOUNT, CREDIT NOTE / DEBIT NOTE

Goods and Services Tax – Started By: – SAFETAB LIFESCIENCE – Dated:- 16-12-2017 Last Replied Date:- 27-3-2018 – Dear Team, What is the major difference from Cash Discount and Trade Discount. We are giving discount to our customers for making payment prior to agreed due date / credit periods. Discount is not worked on the basis of any percentage on the basic selling price. It is based on the number of days of payment made prior to the due dates. Whether we have to charge GST on the Discount amount. Whether we have to give Credit Note or we can get Debit Note from party or any one of the both can be used. Whether, the issuance of Credit Note without GST is a mistake and leviable penalty under GST act. Because, some of our clients are asking

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given before or at the time of supply those given after the time of supply If a discount has been allowed before or at the time of supply, and it has been mentioned in the invoice separately, it will not be added in the value of supply. If discount is allowed after the supply, it may or may not be added in the value of the supply, depending on the following factors: whether the discount can be linked directly to the relevant invoice of supply, whether the discount has been allowed as per the terms already agreed upon before or at the time of supply, or whether the input tax credit related to the amount of the discount allowed has been reversed by the recipient of the supply.If you have a policy of allowing a cash discount if a customer pays

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stand reduced , a credit note can be issued by supplier not later that September 2018 or date of filing of return whichever is earlier ( Sec 34 (2) of CGST Act ) Credit note should have details ie . Taxable value ,Rate of tax and amount of tax credited .Clients ( Recipient ) can not issue debit note. – Reply By YAGAY AND SUN – The Reply = Discounts, other than of mentioned on the Invoices, must be announced prior to giving it after the sales. – Reply By subramanian vijayakumar – The Reply = I endorse Badra Ji views – Reply By ROHIT GOEL – The Reply = In continuation to the discussion an example may be taken FMCG company raising Invoice of ₹ 10,000/- plus GST 1,800/- for ₹ 11,800/- and at the bottom of Invoice ₹ 450/- disco

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