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Discount given BEFORE or AT the time of supply, duly recorded in the invoice, is:
AExcluded from value of supply
BIncluded in value
CIncluded only if to a related person
DExcluded only with prior CBIC approval
Answer & Solution
Correct answer: A. Excluded from value of supply
1. Sec 15(3)(a) — discount given before or at the time of supply, duly recorded in the invoice, is excluded from the value of supply.
2. No conditions other than being recorded in the invoice are needed.
3. Post-supply discounts have stricter conditions under Sec 15(3)(b).
_Source: ICAI BoS CA Final Paper 8, Ch 5 "Value of Supply", §Sec 15(3)(a)_
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