diff --git a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
index 448ec54..c2e82fb 100644
--- a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -2731,6 +2731,63 @@
 		einvoice = make_einvoice(si)
 		validate_totals(einvoice)
 
+	def test_einvoice_discounts(self):
+		from erpnext.regional.india.e_invoice.utils import make_einvoice, validate_totals
+
+		# Normal Itemized Discount
+		si = get_sales_invoice_for_e_invoice()
+		si.apply_discount_on = ""
+		si.items[0].discount_amount = 4000
+		si.items[1].discount_amount = 300
+		si.save()
+
+		einvoice = make_einvoice(si)
+		validate_totals(einvoice)
+
+		self.assertEqual(einvoice["ItemList"][0]["Discount"], 4000)
+		self.assertEqual(einvoice["ItemList"][1]["Discount"], 300)
+		self.assertEqual(einvoice["ValDtls"]["Discount"], 0)
+
+		# Invoice Discount on net total
+		si = get_sales_invoice_for_e_invoice()
+		si.apply_discount_on = "Net Total"
+		si.discount_amount = 400
+		si.save()
+
+		einvoice = make_einvoice(si)
+		validate_totals(einvoice)
+
+		self.assertEqual(einvoice["ItemList"][0]["Discount"], 316.83)
+		self.assertEqual(einvoice["ItemList"][1]["Discount"], 83.17)
+		self.assertEqual(einvoice["ValDtls"]["Discount"], 0)
+
+		# Invoice Discount on grand total (Itemized Discount)
+		si = get_sales_invoice_for_e_invoice()
+		si.apply_discount_on = "Grand Total"
+		si.discount_amount = 400
+		si.save()
+
+		einvoice = make_einvoice(si)
+		validate_totals(einvoice)
+
+		self.assertEqual(einvoice["ItemList"][0]["Discount"], 268.5)
+		self.assertEqual(einvoice["ItemList"][1]["Discount"], 70.48)
+		self.assertEqual(einvoice["ValDtls"]["Discount"], 0)
+
+		# Invoice Discount on grand total (Cash/Non-Trade Discount)
+		si = get_sales_invoice_for_e_invoice()
+		si.apply_discount_on = "Grand Total"
+		si.is_cash_or_non_trade_discount = 1
+		si.discount_amount = 400
+		si.save()
+
+		einvoice = make_einvoice(si)
+		validate_totals(einvoice)
+
+		self.assertEqual(einvoice["ItemList"][0]["Discount"], 0)
+		self.assertEqual(einvoice["ItemList"][1]["Discount"], 0)
+		self.assertEqual(einvoice["ValDtls"]["Discount"], 400)
+
 	def test_item_tax_net_range(self):
 		item = create_item("T Shirt")
 
diff --git a/erpnext/regional/india/e_invoice/utils.py b/erpnext/regional/india/e_invoice/utils.py
index 44ba635..fb2779b 100644
--- a/erpnext/regional/india/e_invoice/utils.py
+++ b/erpnext/regional/india/e_invoice/utils.py
@@ -274,10 +274,6 @@
 
 		if invoice.get("apply_discount_on"):
 			item.discount_amount = item.base_amount - item.base_net_amount
-		elif item.discount_amount > 0:
-			item.discount_amount = item.discount_amount
-		else:
-			item.discount_amount = 0
 
 		item.unit_rate = abs(item.taxable_value - item.discount_amount) / item.qty
 
@@ -361,7 +357,7 @@
 		and invoice.discount_amount
 		and invoice.get("is_cash_or_non_trade_discount")
 	):
-		invoice_value_details.invoice_discount_amt = invoice.base_discount_amount
+		invoice_value_details.invoice_discount_amt = invoice.discount_amount
 	else:
 		invoice_value_details.invoice_discount_amt = 0