TaxTMI 
TaxTMI 
Clarification on various doubts related to treatment of secondary or post-sales discounts under GST.
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.... Commissioner (Adm.), Commercial Taxes Department, ...................................................... Subject: Clarification on various doubts related to treatment of secondary or post-sales discounts under GST. GST Circular No. 16/2019 dated 12th March, 2019 was issued by the undersigned for providing clarification on various doubts related to treatment of sales promotio....
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....(hereinafter referred to as "the supplier of goods") to 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. 2. It is clarified that if the post-sale discount is given by the supplier of goods to the dealer without any further obli....
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....ing supplier of services, would be required to charge 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. 3. It is further clarified that if the additional discount is given by the supplier of goods to the dealer to of....
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....-sales discount granted by the supplier of 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 subsection (3) of section 15 of RGST Act. It has already been clarified vide GST Circular No. 16/2019 dated 12th March, 2019 by the undersigned that the supplier of goods can issue financial / commercial....