Gst on incentives
This query is : Resolved
11 August 2018
A cement dealer is receiving target incentives from the company. my query is that whether receiver issue invoice for claiming incentives and charge gst on it? or comapny will pay incentives with gst? then what to do after reeciving incentives in gst return.
please clear what to do after receiving incentives?
please clear what to do after receiving incentives?
12 August 2018
Comapny will pay incentives with gst. Credit note will be issued with GST.
The incentive in your case, is nothing but a form of discount. Discount given after the supply can be reduced from the transaction value subject to satisfaction of the three conditions, viz.,
Terms of discount are established before or at the time of supply
Discount is linked or can be tracked to a particular invoice (ie, it is not on ad-hoc basis)
Recipient should reverse the proportionate amount of ITC pertaining to discount
Therefore, if these conditions are satisfied then the incentive value may be reduced from the transaction value to arrive at the value of supply.
The incentive in your case, is nothing but a form of discount. Discount given after the supply can be reduced from the transaction value subject to satisfaction of the three conditions, viz.,
Terms of discount are established before or at the time of supply
Discount is linked or can be tracked to a particular invoice (ie, it is not on ad-hoc basis)
Recipient should reverse the proportionate amount of ITC pertaining to discount
Therefore, if these conditions are satisfied then the incentive value may be reduced from the transaction value to arrive at the value of supply.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Tax rate change regarding
- GST ISSUE OF INPUT AND OUTPUT GST
- TDS on purchase of under construction property from a reseller
- GST Intimation due to Government took possession of Business Premises under PPE Act
- Non filing of I T Returns
- TDS on Fixed Assets purchased
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
