Goa GST Clarifies Post-Sales Discounts: When Are They Included in Supply Value? Credit Notes and ITC Explained.

The circular from the Government of Goa provides clarifications on the treatment of secondary or post-sales discounts under the Goa GST Act. It specifies that post-sales discounts not requiring any further action from the dealer are not included in the value of supply. However, if the discount involves additional activities by the dealer, it is considered a separate transaction and subject to GST. If discounts are offered to reduce prices for customers, they are added to the value of supply. Dealers can issue credit notes for discounts but cannot reduce their tax liability. Dealers are not required to reverse ITC for discounts received through credit notes.

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