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

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..... pur and Una, H.P 4. The Asstt. Commissioner of State Taxes and Excise, Incharge Distt. Kinnour, H.P Dated Shimla-9 2nd Aug., 2019. Madam/Sir, Subject: Clarification on various doubts related to treatment of secondary or post-sales discounts under GST. Circular No. 92/11/2019-GST has been issued providing clarification on various doubts related to treatment of sales promotion schemes under GST. Post issuance of the said Circular various doubts have been arisen 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, in exercise of powers conferred under section 168(1) of the Himachal Prade .....

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..... uld be in relation to supply of service by dealer to the supplier of goods. The 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. 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 .....

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..... in view of the provisions contained in second proviso to sub-rule (1) of rule 37 of the HPGST Rules read with second proviso to sub-section (2) of section 16 of the HPGST Act as 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. 5. This Circular shall come into force w.e.f. 28.06.2019. 6. Difficulty if any, in the implementation of this Circular may be brought to the notice of this office. Dr. Ajay Sharma, (IAS) Commissioner of State Taxes and Excise, Himachal Pradesh
Circular, Trade Notice, Public Notice, Instructionsor Office or .....

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