"Understanding the Application of GST on Discounted Prices in Supermarkets"

When supermarket in- charge knows how much discounts he is going to pass on to the customer, he can indicate discount percentage/amount in the bill itself and collect GST from the customers on the price arrived after discount and pay the GST so collected to the Government.

For example , let us assume that a customer purchased goods of basic value worth Rs 1000 in a Supermarket(excluding taxes), assuming GST is 18% and the Supermarket gives a discount of 10%, then GST is chargeable at 18% on Rs 900 only

(1000–100(discount)) by the Supermarket from the Customer.

Section 15(3)(a) of CGST Act,2017 provides for deduction of discount amount from the taxable value of supply where discounts are known before effecting supply/sale.