watch_later 10/09/17


1) if we purchase goods on may and payment made on aug after deducting discount 

we have to issue debitnote or credit against these and tax reversal should be done

2) goods ale on april return on july tax reversal should be done


in our produt no vat is applicable

it simple entry we have to done

or issue debit or credit note and tax reverse  should be done

explain these 

clear my doubt regarding these as purchase and sale both are before gst

1 Response | Latest response: 10/09/17 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 10/09/17

GST is charged on supply of goods or services or both. In your case you are discussing about cash discount. Even under earlier laws there was no provision for reversal of taxes against cash discounts.

Trade discounts were eligible for deduction of taxes.

Here you can account these without charging GST and without reversing earlier taxes paid.


Sign up to discuss taxation, accounting and finance topics with experts from all over India.

Join Discussion