GST on Sales Incentive

[Raja Sekhar]

I am Distributor of Engine oils, i received Sales inventive amount through Cheque, is gst applicable on sales incentive, if yes what is the section and rule ,rate of tax and HSN Code

AI Summary

Engine Oils Distributor Seeks Clarity on GST Applicability for Sales Incentives; Referencing Advance Rulings, Section 15 A distributor of engine oils inquired about the applicability of GST on sales incentives received via cheque, seeking details on the relevant section, rule, tax rate, and HSN code. One response indicated that if the incentive or discount is pre-agreed in writing between the seller and buyer, it is exempt from GST, provided the invoice reflects this agreement. Another response emphasized that for a deduction to be admissible, the incentive or discount must be known at the time of supply, referencing a decision by the Authority for Advance Rulings in Maharashtra involving Ultratech Cement Ltd.