Turn over discount

This query is : Resolved

Deepak Jain (Querist)
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28 April 2018 XYZ, a goods manufacturer and suplier company has made an agreement with a distributor to provide turnover discount (post-sales) if distributor achieves quarterly targets as mutually decided by both. Thereafter, Credit note is issued by suplier for this turnover discount.

My question is that do distributor needs to pay any gst on such credit note issued against turnover and if not, do they need to be mentioned in GST returns?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 April 2018 No need to pay GST by the distributor.

Anmol Davesar

Anmol Davesar (Expert)
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28 April 2018 GST is not payable on the discount given even after the supply, provided there was an agreement entered between both the supplier and the recipient. also, credit note has to be issued so that buyer can reverse the gst itc claimed on discount amount.

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