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 ..... Bengaluru-560009, Dated: 28-06-2019 COMMISSIONER OF COMMERCIAL 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 discount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for any additional activity / promotional campaign to be undertaken by the dealer. 3. It is clarified 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 include ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to claim input tax credit (hereinafter 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 suppli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the provisions contained in sub-section (3) of section 15 of KGST Act. The supplier of goods can issue financial/commercial credit notes 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 va ..... X X X X Extracts X X X X X X X X Extracts X X X X
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