Post sale discounts tied to dealer obligations are consideration for services and attract GST, with corresponding input tax credit rules. Explains GST treatment of post sales discounts: unconditional discounts relating to the original supply may be excluded from the supplier's value of supply if statutory conditions are met; conditional discounts requiring dealer promotional activity are consideration for services subject to GST by the dealer with ITC available to the supplier. Additional discounts paid to enable dealer reduced pricing must be added to the dealer's value of supply, and registered customers claim ITC only to the extent of tax paid. If statutory exclusion conditions fail, suppliers may issue financial/commercial credit notes but cannot reduce original tax liability; dealers need not reverse ITC where they adjust supply value after the credit note and pay original tax charged.
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 tied to dealer obligations are consideration for services and attract GST, with corresponding input tax credit rules.
Explains GST treatment of post sales discounts: unconditional discounts relating to the original supply may be excluded from the supplier's value of supply if statutory conditions are met; conditional discounts requiring dealer promotional activity are consideration for services subject to GST by the dealer with ITC available to the supplier. Additional discounts paid to enable dealer reduced pricing must be added to the dealer's value of supply, and registered customers claim ITC only to the extent of tax paid. If statutory exclusion conditions fail, suppliers may issue financial/commercial credit notes but cannot reduce original tax liability; dealers need not reverse ITC where they adjust supply value after the credit note and pay original tax charged.
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