TMI BlogHow to claim receipt of business promotion expenses to be filed as exemption under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... We have received incentive on sales from our principles. Also, during final calculation, our principals debit from the sales achieved, the amount in proportion to the percentage of incentive received. ( Say, if 10 lakhs is the sales incentive ( over and above normal operating discounts), this amount will be reduced to the extent in the subsequent year. Our Auditors say that this payment credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received to our account is taxable under GST and we are liable to pay now. When we enquired with our principals, they said that, they have raised credit note and debit note for the same and GST not charged . But returns are filed by the principals under the provision of exemption which falls under 0 % GST as per system. We were informed that, under GST, principles are entitled to GST exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for sales promotional offers .. Please clarify and confirm. - Reply By Yash Jain - The Reply = Dear Sir, Its Very Much Simple - You are rendering Service against which you are getting Incentive . This service is not in negative List (Please correct me if the same is there, as I too have not viewed the same for some time) So according to me , yes, you are liable to Pay GST. As for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Principle, for him, the GST you will charge will be Input, and hence if he get or does not get input he is safe, as the Liability to discharge GST on the said Business Promotion Revenue (From agents angle) is always on agent and not on principle Hence either issue and Debit Note for taxes (Against CN As being received from Principle or Its better to Raise Invoice and File GSTR 1 )/ GSTR 3B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In GST Even on Free Supplies (FOC Sales) GST is levied and hence the above transaction (Be it any nomenclature) is subject to GST. Others Comments Highly Appreciable. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = If any discount and incentives are given in the course of business, there shall be an agreement between them in this regard. If it is so the same should be indicated in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he invoice. In such cases GST is not required to be levied. - Reply By Ganeshan Kalyani - The Reply = There are conditions for credit / debit note. - How to claim receipt of business promotion expenses to be filed as exemption under GST - Query Started By: - Usha RaoJ Dated:- 15-9-2018 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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