TaxTMI 
TaxTMI 
Clarification on various doubts related to treatment of secondary or post-sales discounts under GST
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.... under GST--Regarding The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 105/24/2019-GST, dated 28th June, 2019 to address certain issues relating to treatment of sales promotion schemes under GST. In order to ensure uniformity in the implementation of the law across the State, the Commissioner, in exercise of its powers conferred under section 168 of the Chhattisgarh ....
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....ed at the dealer's end, then the post sales discount given by the said supplier will be related to the original supply of goods and it would not be included in the value of supply, in the hands of supplier of goods, subject to the fulfilment of provisions of sub-section (3) of section 15 of the CGGST Act. However, if the additional discount given by the supplier of goods to the dealer is the post-....
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.... 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 ....
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....oods can issue financial/commercial credit notes in such cases but he will not be eligible to reduce his original tax liability. Doubts have been raised as to whether the dealer will be eligible to take ITC of the original amount of tax paid by the supplier of goods or only to the extent of tax payable on value net of amount for which such financial/commercial credit notes have been received by hi....