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

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..... sioners of Taxes (All)/Superintendent of Taxes (All)/ Inspector of Taxes (All) Madam / Sir, Subject: Clarification on various doubts related to treatment of secondary or post-sales discounts under GST - reg. Circular No. 10/2019-GST dated 7th March, 2019 was issued providing clarification on various doubts related to treatment of sales promotion schemes under GST. Post issuance of the said Cir .....

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..... ferred to as "the supplier of goods") to the dealer. It would be important to examine whether the additional discount is given by the 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 .....

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..... f 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 re .....

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..... es discount granted by the supplier of goods is not permitted to be excluded from the value of supply in the hands of the said supplier not being in accordance with the provisions contained in sub-section (3) of section 15 of Manipur GST Act. It has already been clarified vide Circular No. 10/2019-GST dated 7th March, 2019 that the supplier of goods can issue financial / commercial credit notes in .....

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..... 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. 6. Difficulty if any, in the implementation of this Circular may be brought to the notice of the Commissioner. (Jaspreet Kaur) Commissioner of Taxes, Manipur
Circu .....

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