TaxTMI 
TaxTMI 
Clarification on various doubts related to treatment of secondary or post-sales discounts under GST.
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....---------------------------------------------------------------------------------------------- Office of the Chief Commissioner of State Tax, Edupugallu, Vijayawada Circular No. 28/2019/GST CCTs Ref.in CCW/GST/74/2015 Dt. 24.07.2019 Subject: Clarification on various doubts related to treatment of secondary or post-sales discounts under GST. Circular No.15/2019/GST dated 07.03.2019 (92/11/....
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....ed by the provisions of clause (b) of sub-section (3) of section 15 of the APGST Act. It is crucial to examine the true nature of discount given by the manufacturer or wholesaler, etc. (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 acti....
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....he additional discount will be the consideration for undertaking such activity and therefore would be in relation to supply of service by dealer to the supplier of goods. The dealer, being 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 (herei....
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....ler only to the extent of the tax paid by the said customer to the dealer in view of second proviso to sub-section (2) of section 16 of the APGST Act. 5. There may be cases where post-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 sub-section (3) of....