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India GST Tax Calculation on Discount

edited Jun 2, 2025 2:23PM in Accounting / ERP 2 comments

Tax Should calculate after all discounts.

Kindly refer the following scenario.

Item A ==> Base Rate ==> 100

Discount ==> Rate ==> -10%

Subtotal ==> ==> 90

Discount ==> Rate ==> -10%

Subtotal ==> ==> 81

Discount ==> Rate ==> -10%

Subtotal ==> ==> 72.9

Tax should calculate on "72.9" instead of "81".

Currently system calculating discount on 81. 

How can we achieve above scenario.

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