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GST on incentive income

08 June 2020

Dealer reached the targets as given by company,and sold out goods more than the targets given, because of which company had given incentive to the dealer

Is Incentive income received by dealer attracts gst?...is gst payable on it while performining Gst Audit of FY 2018-19...

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5 Replies

Padmanabhan (Student) (1321 Points)
Replied 08 June 2020

Incentive income is chargeable to tax.

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Jaimin Thakkar (33 Points)
Replied 08 June 2020

With any reference or supporting..if one can provide

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 08 June 2020

As per Section 15 of CGST Act Any inventive or Discount for which an agreement has been done before supply & such discount or incentive can link to relevant Invoices , then Yes supplier is required to Issue GST Credit Note.

(For more explanation kindly refer Circular 92/11/2019 GST)

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KRISSHNAN KP (4215 Points)
Replied 09 June 2020

Incentive income received by a registered dealer is taxable

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 09 June 2020

Yes in Incentive or Commission where TDS has been deducted be surrey be taxable & attracts GST . But as per Queriest the Query sounds that It's additional discount in form achievement of target ,can be called as turnover scheme. so in this case Section 15 (3) of CGSt need to be refer.