GST on Incentives recd

[Ethirajan Parthasarathy]

Petroleum Companies pay incentives (sort of quantity discount) for dealers, depending on their off take.

Are dealers liable to pay GST on such incentives received.

AI Summary

Dealers Not Liable for GST on Petroleum Incentives if Documented Properly per Section 15(3) of CGST Act, 2017. A discussion on whether dealers are liable to pay GST on incentives received from petroleum companies, which are considered quantity discounts. According to Section 15(3) of the CGST Act, 2017, discounts given before or at the time of supply and recorded in the invoice are not included in the transaction value for GST purposes. Experts agree that if incentives are documented in an agreement and reflected in invoices, GST is not applicable. Historical cases in the Service Tax regime also support this view, indicating no GST on such incentives unless specific conditions apply.