Clarification on various doubts related to treatment of secondary or post-sales discounts under GST.

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....t issuance of the said Circular various representations have been received from the trade and industry seeking clarifications in respect of tax treatment in cases of secondary discounts or post sales discount. The matter has been examined in order to ensure uniformity in the implementation of the law across the field formations, the Commissioner, in exercise of its powers conferred under section 168(1) of the Goa Goods and Service Tax Act, 2017 (hereinafter referred to as "the Goa GST Act") clarifies the issues in succeeding paragraphs. 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 Goa GST Act. It is crucial to examine the true nature of di....

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....C") 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 customer to augment the sales volume, then such additional discount would represent the consideration flowing from the supplier of goods to the dealer for the supply made by dealer to the customer. This additional discount as consideration, payable by any person (supplier of goods in this case) would be liable to be added to the consideration payable by the customer, for the purpose of arriving value of supply, in the hands of the dealer, under section 15 of the Goa GST Act. The customer if registered would be eligible to claim ITC of the ....