Loyalty points value should be considered as a discount amount rather than cash because we do not receive any money from the customer for them, and we need to file GST according to the bill value, which currently results in a loss for us. For example, if a customer has earned 10,000 points worth ₹500 and buys an item for ₹1,000, redeeming the points means the customer effectively pays only ₹500. However, our current system still shows the bill value as ₹1,000, requiring us to file GST based on this amount. This situation leads to a loss of both profit and principal, as well as paying GST on the difference between the purchase and sale value. The bill amount should be adjusted to ₹500 instead of ₹1,000. Kindly address this issue.
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