TaxTMI 
TaxTMI 
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?
Incentive Received from retail Sale of Liquor
02 Dec 2023 
8 Replies 
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Post-sale discounts on non-GST liquor sales not subject to GST when demonstrable, though authorities may challenge treatment.
Post sale discounts, turnover/target incentives or similar payments credited to a retail liquor dealer for purchases of non GST/exempt liquor are not taxable under GST where the dealer can demonstrate they are bona fide post sale discounts and there is no supply of goods or services by the dealer; routing of payments through marketing agencies or absence of TDS does not alone create GST liability, although tax authorities may challenge the treatment. (AI Summary)
Post sale discounts, turnover/target incentives or similar payments credited to a retail liquor dealer for purchases of non GST/exempt liquor are not taxable under GST where the dealer can demonstrate they are bona fide post sale discounts and there is no supply of goods or services by the dealer; routing of payments through marketing agencies or absence of TDS does not alone create GST liability, although tax authorities may challenge the treatment. (AI Summary)