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 ..... All Joint Commissioner (Adm.), Commercial Taxes Department, Subject: Clarification on various doubts related to treatment of secondary or post-sales discounts under GST. GST Circular No. 16/2019 dated 12th March, 2019 was issued by the undersigned for providing clarification on various doubts related to treatment of sales promoti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , etc. (hereinafter referred to as the supplier of goods ) to the dealer. It would be important to examine whether the additional discount is given by the supplier of goods in lieu of consideration for any additional activity / promotional campaign to be undertaken by the dealer. 2. It is clarified that if the post-sale discount is given by the supplier of goods to the dealer without any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he dealer, being supplier of services, would be required to charge applicable GST on the value of such additional discount and the supplier of goods, being recipient of services, will be eligible to claim input tax credit (hereinafter referred to as the ITC ) of the GST so charged by the dealer. 3. It is further clarified that if the additional discount is given by the supplier of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e may be cases where post-sales discount granted by the supplier of goods is not permitted to be excluded from the value of supply in the hands of the said supplier not being in accordance with the provisions contained in subsection (3) of section 15 of RGST Act. It has already been clarified vide GST Circular No. 16/2019 dated 12th March, 2019 by the undersigned that the supplier of goods can iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long as the dealer pays the value of the supply 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. (Dr. Preetam B. Yashvant) Commissioner State Tax, Rajasthan, Jaipur F.17(134)ACCT/GST/2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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