Discount under GST, Goods and Services Tax - GST

[kamdev senapati]

Dear Experts,

In some cases we have received short payment from customers due to short quantity/rate difference.

These thing comes to notice after received the payment.

Customers are not giving us any debit note.

My Quarry is:-

For accounting purpose shall we book the short payment under discount head....

Please advise....

Posts / Replies

[Vamsi Krishna]

Hi

You have to book the difference under Credit note head and reverse the GST liability to the extent of shortage/damaged goods.

Its better to inform your customers to give you immediate intimation about the details of such deductions so that you will get your GST liability reduced in the same month.

[CS SANJAY MALHOTRA]

Merry Christmas Sh. Senapati ji,

Receipt of short payment due to varied reasons is a regular feature in Industry and don't get frustrated.

You have the option to raise Credit Note with or without GST as per your business model. If you raise Credit Note with GST, your tax liability in return will get reduced and the entry will be auto populated as Debit Note in your Customers GSTR-2 return. Credit Note can be for discount.

The above addresses your concern and the credit note raised by you becomes Debit Note in Customer Books.