TMI BlogClarification on various doubts related to treatment of secondary or post-sales discounts under GST.X X X X Extracts X X X X X X X X Extracts X X X X ..... issuance of the said Circular various representations have been received from the trade and industry seeking clarifications in respect of tax treatment in cases of secondary discounts or post sales discount. The matter has been examined in order to ensure uniformity in the implementation of the law across the field formations, the Commissioner of State tax, in exercise of its powers conferred under section 168 of the Assam Goods and Services Tax Act, 2017 (hereinafter referred to as the Assam GST Act ) clarifies the issues in succeeding paragraphs. 2. For the purpose of value of supply, post sales discounts are governed by the provisions of clause (b) of sub-section (3) of section 15 of the Assam GST Act. It is crucial to examine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nafter referred to as the ITC ) of the GST so charged by the dealer. 4. It is further clarified that if the additional discount is given by the supplier of goods to the dealer to offer a special reduced price 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 purpose of arriving value of supply, in the hands of the dealer, under section 15 of the Assam GST Act. The customer, if registered, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as reduced after adjusting the amount of post-sale discount in terms of financial / commercial credit notes received by him from the supplier of goods plus the amount of original tax charged by the supplier. 6. This Circular is clarificatory in nature and not meant for any interpretation of provisions of the Act and rules. 7. Difficulties, if any, in implementation of the above instructions may be brought to the notice of the Commissioner at an early date. 8. This Circular shall be deemed to have been issued on 28 th June, 2019. Sd/- Anurag Goel, IAS., Commissioner of State tax, Assam, Dispur, Guwahati Memo No. CT/GST-15/Pt-1/2017/40-A Dated Dispur the 1st J ..... X X X X Extracts X X X X X X X X Extracts X X X X
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