Post-sale discounts under GST generally do not alter transaction value or input tax credit; certain inducements are taxable. Discounts resulting from supplier-issued financial or commercial credit notes do not reduce original transaction value, so recipients need not reverse Input Tax Credit. Post-sale manufacturer-to-dealer discounts generally lower the dealer's sale price and are not consideration for the dealer's supply absent a manufacturer-end-customer agreement; where such an agreement exists and credit notes enable discounted end-customer sales, the discount is an inducement included in consideration. Distinct promotional services are taxable only if contracted separately with defined consideration.
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 under GST generally do not alter transaction value or input tax credit; certain inducements are taxable.
Discounts resulting from supplier-issued financial or commercial credit notes do not reduce original transaction value, so recipients need not reverse Input Tax Credit. Post-sale manufacturer-to-dealer discounts generally lower the dealer's sale price and are not consideration for the dealer's supply absent a manufacturer-end-customer agreement; where such an agreement exists and credit notes enable discounted end-customer sales, the discount is an inducement included in consideration. Distinct promotional services are taxable only if contracted separately with defined consideration.
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