Post-sale discounts: distinguish price adjustment from consideration for dealer services to determine GST liability and ITC entitlement. Where a supplier gives a post-sale discount without imposing further obligations, that discount may be excluded from the supplier's taxable value if subsection (3) of section 15 of the BGST Act is met. If the discount incentivises promotional services by the dealer, it is consideration for services and the dealer must charge GST while the supplier may claim input tax credit. If the supplier pays the dealer to reduce customer prices, that amount is added to the dealer's consideration for determining value of supply.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Post-sale discounts: distinguish price adjustment from consideration for dealer services to determine GST liability and ITC entitlement.
Where a supplier gives a post-sale discount without imposing further obligations, that discount may be excluded from the supplier's taxable value if subsection (3) of section 15 of the BGST Act is met. If the discount incentivises promotional services by the dealer, it is consideration for services and the dealer must charge GST while the supplier may claim input tax credit. If the supplier pays the dealer to reduce customer prices, that amount is added to the dealer's consideration for determining value of supply.
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