TaxTMI 
TaxTMI 
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.
GST on Incentives recd
13 Feb 2019 
4 Replies 
7988 Views Asked by
Discount treatment under GST excludes qualifying incentives from taxable value when invoiced or agreed and ITC reversed.
Incentives treated as discounts under Section 15(3) of the CGST Act, 2017 are excluded from taxable value when recorded in the invoice before or at supply; post-supply incentives are excluded only if established by an agreement entered into at or before supply, specifically linked to invoices, and the recipient reverses attributable input tax credit. Documentary evidence, invoice practice and ITC reversal determine whether incentives to dealers attract GST. (AI Summary)
Incentives treated as discounts under Section 15(3) of the CGST Act, 2017 are excluded from taxable value when recorded in the invoice before or at supply; post-supply incentives are excluded only if established by an agreement entered into at or before supply, specifically linked to invoices, and the recipient reverses attributable input tax credit. Documentary evidence, invoice practice and ITC reversal determine whether incentives to dealers attract GST. (AI Summary)