Secondary discounts under GST clarified: input tax credit, consideration treatment, and dealer promotional services depend on the underlying supply arrangement. Clarification on secondary or post-sale discounts under GST states that input tax credit need not be reversed where financial or commercial credit notes do not reduce the original transaction value. A post-sale discount to a dealer is generally not consideration for onward supply or for a separate service when the dealer acts on a principal-to-principal basis and no independent service is rendered. GST arises only where specific promotional or related services are expressly agreed for a 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.
Secondary discounts under GST clarified: input tax credit, consideration treatment, and dealer promotional services depend on the underlying supply arrangement.
Clarification on secondary or post-sale discounts under GST states that input tax credit need not be reversed where financial or commercial credit notes do not reduce the original transaction value. A post-sale discount to a dealer is generally not consideration for onward supply or for a separate service when the dealer acts on a principal-to-principal basis and no independent service is rendered. GST arises only where specific promotional or related services are expressly agreed for a defined consideration.
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