Incentive Received from retail Sale of Liquor

[gururaj Bhat]

Dear All,

One of the registered dealer is into retail sale of liquor in karnataka. All the liquor will be purchased through state govt breweries. On ordering certain quantity of liquor by the dealer, the liquor manufacturing company through their marketing agencies/distributors pay some discount to the dealer. Liquor Company will pay to marketing agencies/distributors then the agencies/distributors will credit the amount to the dealer bank account. No TDS is deducted for any transactions. There is no addition activity carried for this transaction nor there is a supply of goods or service. Is the amount received liable to GST? As the primary product is non gst supply, income derived from it is taxable under GST?

AI Summary

Liquor Retailer's Incentives from Manufacturers via Agencies Not Liable for GST as Post-Sale Discounts: Expert Consultation Advised A registered dealer involved in the retail sale of liquor in Karnataka queries whether incentives received from liquor manufacturers, through marketing agencies, are subject to GST. The dealer purchases liquor from state government breweries, and the incentives are paid as bank transfers by marketing agencies. A respondent clarifies that such incentives, considered post-sale discounts from the original seller, are not liable for GST, as there is no supply of goods or services involved. However, it is advised to consult an expert for a definitive stance, as tax authorities might interpret these transactions differently.