Clarification on various doubts related to treatment of secondary or post-sales discounts under GST

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..... ssued vide Memo No. 637/GST-2, dated 11 th March, 2019 (corresponding 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 seconda .....

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..... supplier of goods in lieu of consideration 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 .....

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..... eing 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. 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 repr .....

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..... ds of the said supplier not being in accordance with the provisions contained in sub-section (3) of section 15 of HGST Act. It has already been clarified through Circular issued vide Memo No. 637/GST-2, dated 11 th 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 t .....

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..... unt 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. 6. Difficulty if any, in the implementation of this circular may be brought to the notice of the Department. Amit Kumar Agrawal Excise Taxation Commissioner-cum- .....

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