Discount Calculator
Savings & DealsCalculate percentage discounts, flat cash off, stacked promo coupons, and post-discount GST amounts instantly.
How are Discounts Taxed Under GST?
Under Section 15(3) of the CGST Act 2017:
- • Discounts shown on the invoice (trade discounts, festive sales) are deducted before computing GST. You only pay GST on the net discounted amount.
- • Post-supply discounts (cash discounts, volume rebates) require a formal Credit Note to reverse the GST liability.
Related Business & Tax Tools
View All ToolsHow to Use This Tool
Simple steps to calculate and verify
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1
Enter Original MRP / Price Input the list price of the good or service before any discounts.
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2
Select Discount Method Choose Percentage Discount (e.g. 15%), Flat Rupee Discount, or Tiered/Dual Discounts (e.g. 20% + 10%).
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3
Apply Applicable GST Slab Select the GST tax slab (5%, 12%, 18%, 28%) to be applied on the discounted taxable value.
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4
Review Post-Tax Invoicing Value View the net taxable price, total discount savings, GST tax amount, and final invoice payable value.
Pro Tips & Statutory Advice
Practical business & compliance advice
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Section 15(3) Trade Discount Rules Trade discounts shown on the face of the tax invoice reduce the taxable value under Section 15(3) of the CGST Act, reducing GST for the buyer.
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No GST Charged on Trade Discounts GST is calculated strictly on the discounted price, meaning your buyer pays less tax when you offer upfront discounts.
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Successive Discounts are Compounded A '20% + 10%' tiered discount is NOT 30%! On a ₹1,000 product, 20% lowers it to ₹800, and 10% off ₹800 is ₹80, resulting in ₹720 (28% effective discount).
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Cash Discounts for Fast Settlement Offer a 2% cash discount for payments settled within 7 days to dramatically reduce your working capital cycle.
Frequently Asked Questions
Understanding commercial discounts and tax treatment.
How do stacked discounts (e.g. 20% + extra 10%) work?
Stacked discounts are calculated sequentially, not added together. For a ₹1,000 item with 20% off plus an extra 10% coupon: First, 20% reduces ₹1,000 to ₹800. Then the extra 10% coupon is applied to the remaining ₹800, giving an ₹80 discount. The final price is ₹720 (total 28% off, not 30%).
Can an Indian business claim GST on discounted sales?
Yes. If the discount is recorded on the face of the tax invoice, the seller only pays GST on the net discounted taxable value. Both parties save on the tax component.