GST – Started By: – Ethirajan Parthasarathy – Dated:- 13-2-2019 Last Replied Date:- 14-2-2019 – Petroleum Companies pay incentives (sort of quantity discount) for dealers, depending on their off take.Are dealers liable to pay GST on such incentives received. – Reply By KASTURI SETHI – The Reply = Dear Querist, Incentive on what supply of goods by the Petroleum Cos. ? As per Section 15 (3) of CGST Act, 2017, discount shall not be included into the transaction value for the purpose of payment of GST. Hence GST is not payable on the element of discount. Relevant portion of section 15 is appended below:- (3) The value of the supply shall not include any discount which is given – (a) before or at the time of the supply if such discoun
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has also been a bone of contention during the erstwhile Service Tax Regime where there have been cases relating to Advertising Companies or Motor Vehicle Dealers etc where they have been given discounts based on the turnover achieved by them during the financial year . This discount normally is given after the end of the financial year. These discounts normally do not feature in Agreements and are generally decided by the company after the completion of the financial year based on their results.There are more than enough case laws in the erstwhile Service tax regime where attempts to charge service tax on incentives have been quashed by adjudicating authorities. – Reply By rajkumar shukla – The Reply = I think Petro companies are still payi
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