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What is the GST to be calculated on?
Expert: Hank Bulmash
If a manufacturer or supplier offers a two per cent discount, if invoice is paid in 10 days, what amount is the GST to be calculated on. The gross amount or the net sale (gross minus two per cent)?
Hank Bulmash answered:
GST is paid on the actual value of the liability, that is the discounted amount if the invoice is paid in 10 days.
About the author
Bulmash Accounting Professional Corporation/CPA
Linked In: https://www.linkedin.com/pub/hank-bulmash/0/389/811