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TMI BlogClarification on various doubts related to treatment of secondary or post-sales discounts under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... rresponding Centre circular no.92, dated 07.03.2019) was issued providing clarification on various doubts related to treatment of sales promotion schemes under GST. Post 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 ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditional 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 included in the value of sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit (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 supplier of goods to the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (3) of section 15 of HGST Act. It has already been clarified through Circular issued vide Memo No. 637/GST-2, dated 11th March, 2019 (corresponding Centre circular no.92, dated 07.03.2019) that 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 deal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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