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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 ..... ERCIAL TAXES CIRCULAR No. GST-10/2019-20 Subject: Clarification on various doubts related to treatment of secondary or post-sales discounts under GST. 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 imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that if the post-sale discount is given by the supplier of goods to the dealer without any further obligation or action required at the dealer's end, then the post sales discount given by the said supplier will be related to the original supply of goods and it would not be included in the value of supply, in the hands of supplier of goods, subject to the fulfilment of provisions of sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther 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 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes in such cases but he will not be eligible to reduce his original tax liability. Doubts have been raised as to whether the dealer will be eligible to take ITC of the original amount of tax paid by the supplier of goods or only to the extent of tax payable on value net of amount for which such financial / commercial credit notes have been received by him. It is clarified that the dealer will not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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