GST Updates On Prompt Payment Discount
IRAS has updated their GST e-tax guide on the change in rules for prompt payment discount with effect from 1 April 2020. GST will be charged on the discounted price only if the customer fulfills the condition of the prompt payment discount.
This is a welcome move as businesses has a hard time configuring their accounting system for prompt payment discount based on current rules (i.e. GST is chargeable on the discounted price regardless of whether the prompt payment discount is taken up). It's time to update the IT department of this good news.
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