Question ID : 31685

Gst on incentives, qty sale, advertisement expenses reimbursement

We are trader, our supplier provides below after sales 1. Incentive for sales promotion, 2. quantity discount on sales 3. reimbursement of advertising expenses Please advise rate gst rate for issue of invoicedebit note along with hsnsac codes Thank you

There are conditions for issue of credit note which are practically very difficult for cases such as quantity discount, sales promotion, identifying invoice wise etc. In my view, we can ask the supplier to provide the agreed discounts in one or more supply invoices as per volumes by paying the taxes on total value . Example value of supply Rs100- discounts on various fronts Rs70- Net value Rs30 GST on Rs100 @18 Rs18 payable to supplier Rs48 The buyer can avail ITC of Rs18- gst paid. This may be acceptable to seller, buyer and department in a win win situation.