Is GST applicable on discounted products?
Is GST applicable on discounted products?
GST liability of the supplier would be reduced if both supplier and receiver of the goods or services are aware of the discount before supply i.e. GST would not be charged on discount. There will be no differentiation in GST between trade and cash discounts.
Is GST calculated before or after discount?
When you offer your customers a discount on the selling price of your goods and services, GST is chargeable on the net discounted price.
Is GST charged on discounted price India?
Hence, net value of supply on which GST is payable is INR 9,000. Thus, when discount is mentioned in the invoice and payment is not collected, GST on discount amount would not be applicable. Find GST rate for goods and services.
Is GST applied after cash discount?
GST liability of the supplier would be reduced if both supplier and receiver of the goods or services are aware of the discount before supply. There will be no differentiation in GST between trade and cash discounts. Those given before or at the time of supply, and. Those given after the time of supply.
How do you calculate GST on a discounted item?
40,320/- (5\% of Rs. 6, 30,000/- = Rs 31,500+ GST@ 28\% on Rs. 31,500/- = Rs….GST on Discounts.
| Discount is given | Allowed as deduction from transaction value? |
|---|---|
| On or before time of supply and recorded in tax invoice | Yes |
| After supply but it was known before/at time of supply and can be linked to relevant invoice | Yes |
How is special discount treated in GST?
Discounts given after supply will be allowed only if
- It is mentioned in the agreement entered into before sale AND.
- input tax credit proportionate to the discount has been reversed by the recipient of the supply AND.
- It can be clearly tracked to relevant tax invoice.