TaxTMI 
TaxTMI 
Clarification on various doubts related to treatment of secondary or post-sales discounts under GST
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.... Bihar, Patna. To, All Additional Commissioner All Circle Incharge: Bihar. Subject: Clarification on various doubts related to treatment of secondary or post-sales discounts under GST - reg. Ref: CBIC Circular No. 105/25/2019-GST dated, 28th June, 2019 CBIC Circular No. 92/11/2019-GST dated 7th March, 2019 was issued providing clarification on various doub....
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....nufacturer 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 activity / promotional campaign to be undertaken by the dealer. 3. It is clarified that if the post-sale discount is given by the s....
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....n 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 (hereinafter referred to as the "ITC") of the GST so charged by the dealer. 4. It is further clarified ....
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....to sub-section (2) of section 16 of the BGST 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 section 15 of BGST Act. It has already been clarified vide CBIC Circular No. 92/11/2019....