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Post sale discount and GST

09 November 2019

what is the status of GST applicability regarding post sale discount which is reimbursed by say manufacturers to distributors?

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 09 November 2019

Circular 105/24/2019 GST ,dt 28/6/2019 :
Stating that in such reimbursement by Supplier to Recepient (manufacturer to distributor ), the Recepient is liable Raise Bill for the same to Supplier. BUT ..... this circular was withdrawn/Rescinded by Circular 112/31/2019, dated 3/10/2019.

Hence in this case the Earlier circular 92/11/2019-GST is applicable & Financial Credit Note is to be issued in case of such reimbursement.