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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 ..... d 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 examined in order to ensure uniformity in the implementation of the law across the field formations, the Commissioner, in exercise of its powers conferred under section 168(1) of the Goa Goods and Service Tax Act, 2017 (hereinafter referred to as the Goa GST Act ) clarifies the issues in succeeding paragraphs. 2. For the purpose of value of supply, post sales discounts are governed by the provisions of clause (b) of sub-section (3) of section 15 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 represent the consideration flowing from the supplier of goods to the dealer for the supply made by dealer to the customer. This additional discount as consideration, payable by any person (supplier of goods in this case) would be liable to be added to the consideration payable by the customer, for the purpose of arriving value of supply, in the hands of the dealer, under section 15 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue 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. 6. It is requested that suitable trade notices may be issued to publicize the contents of this circular. 7. Difficulty if any, in the implementation of this Circular may be brought to the notice of the undersigned. (Dipak M. Bandekar) Commissioner of State Tax, Goa Note 1 : Similar circular is issued under Central Goods and Services Tax Act, 2017 by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, GOI, Ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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