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

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....ry discounts or post-sale discount. 2. 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 of the Uttar Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "the UPGST Act") clarifies the issues as under. S. No. Issue Clarification 1. Whether the full input tax credit is available to the recipient of supply when the recipients make discounted payments to the supplier of goods on account of financial/ commercial credit notes issued by the said supplier? 1. Section 16 (1) of the UPGST Act, 2017 provides that every registered person shall be entitled to take credit of....

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....other person. 2. In cases where there is no agreement between the manufacturer and the end customer, there are two independent sale transactions, one from the manufacturer to the dealer and the other from the dealer to the end customer. The essence of the matter is that in a contract of sale, the sale is completed on the transfer of title to the goods to the buyer. Once this happens, the buyer becomes the owner of the goods, and the seller has no vestige of the title or claims therein. The dealer takes ownership of the goods purchased from the manufacturer and subsequently sells them to the end customer and transaction between the manufacturers to dealer operates on a principal-to-principal basis. These discounts are simply given for com....