GST on Volume Discount

[ABHILASH PANICKER]

Hi,

Is Volume discount received on purchase and sales in the form of credit notes.

Does GST Applicable on such transactions. Please advise.

AI Summary

GST on Volume Discounts: Clarification on Credit Notes and Pre-Arranged Discounts Under Section 15(3) of CGST Act A query was raised regarding the applicability of GST on volume discounts received through credit notes for purchases and sales. Respondents sought clarification on whether the discounts were pre-determined and if they met the conditions under Section 15(3) of the CGST Act. One response clarified that if the discount is provided via a credit note, there is no additional GST liability, as it does not constitute income from services or supplies. The discussion emphasized the importance of the pre-arrangement of discounts and the role of sellers in granting purchase discounts.