- The Indian Central Board of Excise and Customs issued a circular clarifying GST treatment for secondary or post-sale discounts. It states that recipients can claim full input tax credit on discounted payments without reversing it, as the original transaction value and tax liability remain unchanged. Post-sale discounts from manufacturers to dealers aren’t considered as service consideration unless specified in an agreement with the end customer. Additionally, such discounts aren’t considered as payment for promotional activities unless dealers provide distinct services under a separate agreement, which would make GST applicable.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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