TaxTMI 
TaxTMI 
Clarification on various doubts related to treatment of secondary or post-sales discounts under GST.
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....ndhra Pradesh Present: Sri. Peeyush Kumar, I.A.S. --------------------------------------------------------------------------------------------------- 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-sa....
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....hs. 2. For the purpose of value of supply, post sales discounts are governed 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 gi....
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...., exhibition etc., then such transaction would be a separate transaction and the 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, ....
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....er, if registered, would be eligible to claim ITC of the tax charged by the dealer 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 supp....