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Below the Quote on CBIC clarifies GST treatment on post-sale discounts by Karthik Mani, Partner- Indirect tax at BDO India

The circular clarifies an area which has been a subject matter of dispute between the industry and the tax authorities. By giving a clear clarification that the post-sale discounts given to push sales by adopting competitive pricing by the brand owners to the distributors/retailers is not subject to GST, the ambiguity on this aspect is put to rest, which should conclude the ongoing disputes on this issue in favour of the industry. The brand owners can now consider giving post sale discounts to adopt competitive prices to the customers more aggressively, in addition to passing on the GST rate cut benefits, to fuel the demand in the upcoming festive period.

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