TaxTMI 
TaxTMI 
Hi,
Is Volume discount received on purchase and sales in the form of credit notes.
Does GST Applicable on such transactions. Please advise.
GST on Volume Discount
19 Mar 2025 
3 Replies 
1017 Views Asked by
GST on volume discounts: predetermined discounts and credit notes can reduce taxable value if valuation criteria are met.
GST treatment of volume discounts turns on whether the discount was predetermined and on valuation rules excluding qualifying post supply adjustments from taxable value. Volume discounts granted by credit note reduce the consideration for the original supply if they meet statutory criteria for adjustment and therefore do not attract additional GST. For purchasers, the seller's issuance of a credit note effects the adjustment and the buyer need not treat it as new taxable income. (AI Summary)
GST treatment of volume discounts turns on whether the discount was predetermined and on valuation rules excluding qualifying post supply adjustments from taxable value. Volume discounts granted by credit note reduce the consideration for the original supply if they meet statutory criteria for adjustment and therefore do not attract additional GST. For purchasers, the seller's issuance of a credit note effects the adjustment and the buyer need not treat it as new taxable income. (AI Summary)