Gst on target incentive

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This query is : Resolved

Rituraj Arora (Querist)

12 May 2018 We have received incentive of Rs. 49 lacs in FY 17-18 from supplier for achieving sale targets, for incentive supplier has issued credit notes.

Please suggest, whether we are liable to pay GST on the incentive received

Udaya Chandran

Udaya Chandran (Expert)

12 May 2018 As per my opinion, GST is applicable as the incentive is related to the supplies made.

Rupesh Jain

Rupesh Jain (Expert)

12 May 2018 its depend on the condition of PO and agreement with vendor.
if its part of sale achievement/qty. its gst Not applicable.or its rate diff of goods supply then gst will reverse.

Rituraj Arora

Rituraj Arora (Querist)

17 May 2018 In some cases its part if sale achievement/ qty., but in some cases its for rate difference also.
we have received credit note for both kind of incentives from the Supplier.

Rituraj Arora

Rituraj Arora (Querist)

17 May 2018 If supplier is not reducing his output tax liability for such rate difference, then also we required to reverse GST.

Because he has issued Credit note without GST.

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