APGST Act, 2017 - Clarification on various doubts related to treatment of secondary or post - sale discounts under GST

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....direct Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India, New Delhi. Representations have been received seeking clarification in respect of tax treatment in cases of secondary discounts or post-sale discounts. 2. The matter has been examined. In order to ensure uniformity in the implementation of the law across the field formations, the Chief Commissioner, in exercise of his powers conferred under sub-section (1) of section 168 of the Andhra Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as "the APGST 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 disc....

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....(31) of the APGST Act, 2017 defines consideration as to include the monetary value of any act for the inducement of the supply of goods or services, whether by the recipient or by any 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 ....