TaxTMI 
TaxTMI 
Clarification on various doubts related to treatment of secondary or post-sales discounts under GST.
X X X X Extracts X X X X
X X X X Extracts X X X X
....t: Clarification on various doubts related to treatment of secondary or post-sales discounts under GST. No. CT/GST-15/Pt-1/2017/40. - Circular No. 45/2019-GST [No. CT/GST-15/2017/317 dated 14th March, 2019] was issued providing clarification on various doubts related to treatment of sales promotion schemes under GST. Post issuance of the said Circular various representations have been received ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the dealer. It would be important to examine whether the additional discount is given by the supplier of goods in lieu of consideration for any additional activity / promotional campaign to be undertaken by the dealer. 3. It is clarified that if the post-sale discount is given by the supplier of goods to the dealer without any further obligation or action required at the dealer's end, then....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rge applicable GST on the value of such additional discount and the supplier of goods, being recipient of services, will be eligible to claim input tax credit (hereinafter referred to as the "ITC") of the GST so charged by the dealer. 4. It is further clarified that if the additional discount is given by the supplier of goods to the dealer to offer a special reduced price by the dealer to the c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f goods is not permitted to be excluded from the value of supply in the hands of the said supplier not being in accordance with the provisions contained in sub-section (3) of section 15 of Assam GST Act. It has already been clarified vide Circular No. 45/2019-GST [No. CT/GST-15/2017/317 dated 14th March, 2019] that the supplier of goods can issue financial / commercial credit notes in such cases b....