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संदेश

सितंबर, 2018 की पोस्ट दिखाई जा रही हैं

TRADE DISCOUNT ON SALE

Section 15 (3) of the CGST Act, 2017 states that: “The value of the supply shall not include any discount which is given – (a) Before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) After the supply has been effected, if – (I) Such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices, and (ii) Input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply.” Implies - Discount, even if not mentioned on the face of the invoice can be reduced from the taxable value, if following conditions are satisfied: I) Discount is established in terms of an agreement before supply. In simple words, both supplier and recipient are aware and have agreed about the discount before the supply. ii) Discount is linked to a specific supply inv