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

[DR.MARIAPPAN GOVINDARAJAN]

If incentive/discount is agreed to between by the seller and the buyer in writing it is exempted. The invoice shall contain such details.

[KASTURI SETHI]

Dear Querist,

Whether discount or incentive, it must be known prior to or at the time of supply otherwise deduction not admissible. The following decision will makes the position clear:-

2018 (15) G.S.T.L. 455 (A.A.R. - GST) = 2018 (7) TMI 1761 - AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA IN RE : ULTRATECH CEMENT LTD.

AI Summary

Pre-agreed sales incentives exempt from GST when declared at or before supply and recorded on the invoice.
Pre-agreed incentives and discounts agreed in writing and recorded on the invoice are exempt from GST; incentives not known at or prior to supply cannot be deducted from the taxable value and are not admissible for exemption.