Exclusion of Discount or incentive given before or at the time of supply [ Section 15(3) of CGST Act ]

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....eversed by the recipient of the supply, • in accordance with the provisions of section 34. [ Substituted vide Finance Act, 2026, effective date to be notify ] Before the substitution of Clause (b) (b) after the supply has been effected, if- • (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and • (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply. Note • Wherever any discount is offered by the supplier to the recipient, by issuance of a tax credit note as ....

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....e get one free offer • In case of offers like 'Buy One, Get One Free', one item is being 'supplied free of cost' without any consideration. • In fact, it is not an individual supply of free goods but a case of two or more individual supplies where a single price is being charged for the entire supply. • It can at best be treated as supplying two goods for the price of one.  Discounts including 'Buy more, save more' offers:-  • It is clarified that discounts offered by the suppliers to customers (including staggered discount under 'Buy more, save more' scheme and post supply / volume discounts established before or at the time of supply) shall be e....

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....supplier even if the conditions mentioned in clause (b) of section 15(3) of the CGST Act are not satisfied. • In other words, credit note(s) can be issued as a commercial transaction between the two contracting parties. • It is further clarified that such secondary discounts shall not be excluded while determining the value of supply as such discounts are not known at the time of supply and • the conditions laid down in clause (b) of section 15(3) of the CGST Act are not satisfied. • These are the discounts which are not known at the time of supply or are offered after the supply is already over. • For example, M/s A supplies 10000 ....

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....nation of value of supply of insurance service provided by the insurance company to the insured ? • Clarification :- It is, therefore, clarified that No Claim Bonus (NCB) is a permissible deduction under section 15(3)(a) of the CGST Act, for the purpose of calculation of value of supply of the insurance services provided by the insurance company to the insured. • Accordingly, where the deduction on account of No claim bonus is provided in the invoice issued by the insurer to the insured, GST shall be leviable on actual insurance premium amount, payable by the policy holders to the insurer, after deduction of No Claim Bonus mentioned on the invoice. 4. Clarification on applicability of GST on ....