Clarification on GST Applicability on After-Sale Discounts
This query is : Resolved
15 July 2025
Sir,
We are currently issuing credit notes for discounts provided after sales, without charging GST. However, some of our parties have raised objections to this practice.
We would like to understand whether it is mandatory to mention GST on credit notes issued for after-sale discounts. Kindly clarify the applicable GST provisions in this regard.
Please advise.
Thanks in advance.
PLEASE ADVISE.
THANKS IN ADVANCE.
We are currently issuing credit notes for discounts provided after sales, without charging GST. However, some of our parties have raised objections to this practice.
We would like to understand whether it is mandatory to mention GST on credit notes issued for after-sale discounts. Kindly clarify the applicable GST provisions in this regard.
Please advise.
Thanks in advance.
PLEASE ADVISE.
THANKS IN ADVANCE.
CA R SEETHARAMAN
(Expert)
16 July 2025
Under the GST framework, post-sale discounts are addressed by Section 15(3) of the CGST Act. Discounts offered after the supply of goods or services can be excluded from the taxable turnover, provided they are established by prior agreements and linked to relevant invoices.
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