GST on reimbursement of incentive to employees

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Lalit Nyati (Querist)
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20 March 2020 Hellow
My company have contract of a service, in addition to contract price I've also receive same amount of incentive which was I give to my employees.
Now, I want to issue bill for incentive, should I issue GST invoice or without GST.
Please reply.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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20 March 2020 You should Issue GST invoices unless the incentive is a part of your terms of a contract.
In other words, if it has been decided at the time of entering into a contract that incentive has to be paid, then it will not subject to GST .

Lalit Nyati

Lalit Nyati (Querist)
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20 March 2020 Thanks..do you have any legal reference to that..please share..

CA Anita Bhadra

CA Anita Bhadra (Expert)
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21 March 2020 The value of the supply shall not include any discount that is given:

(a) before or at the time of the supply provided such discount has been duly recorded in the invoice issued in respect of such supply; and
(b) after the supply has been effected, provided that (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and (ii) input tax credit as is attributable to the discount has been reversed by the recipient of the supply - section 15(3) of CGST Act.
Thus, discount after supply is permissible as a deduction only if it was known before or at the time of supply

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