194 R and GST - Goods and Services Tax - GST

Respected experts , My query is with reference to the interplay of Section 194R of the Income Tax Act and GST. A company pays incentive to its dealers in cash/kind based on the purchases made by the dealers from the company. The company has deducted income tax u/s 194R based on CBDT Circular 12/2022 . Will this have any GST implications for the dealers?. The GST Department is likely to send notices to the dealers based on 26AS of the dealers. Are the dealers required to raise invoice for the incentive and charge GST on the amount?. In my opinion , there is no supply being made by the dealers, as the incentive is being given on the basis of purchases made by the dealers from the company and there is no provision of service being made here by the dealers .I understand that there have been decisions under the service tax regime holding that incentive given based on purchases made by dealers does not amount to provision of service by the dealers . Keen to know your views. In cases where incentive is paid based on sales made by the dealers, would it be treated as a supply of service by the dealer. In such a scenario can the Company avail ITC if a dealer raises an invoice for such incentive and charges GST ? In my opinion, yes, since it is in the course or furtherance of business and not blocked u/s 17(5) . And if the incentive is paid in kind, should the company raise a GST invoice on the dealer for the supply of goods given an incentive, as it is in the nature of a barter transaction? Kindly share your views. Thanks and Regards, CA Sooraj B