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Treatment of sale incentive in gst

Shivam gupta (student) (263 Points)

05 June 2018

what would be the treatment of sale incentives received from supplier for purchases made from him during the year.
whether it can be recorded in accounts as income without any GST implication?

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11 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 05 June 2018

if the incentive is discount no GST is applicable

Jagdish Akbari (Tax Consultant) (189 Points)
Replied 05 June 2018

post sales incentive/discount has to recoded in account with Credit note/debit note with GST.

RAJA P M ("Do the Right Thing...!!!") (127334 Points)
Replied 05 June 2018

No need...
Performance related Incentives or Discounts will be account without GST. No more restriction...

In case supplier move with GST then You can follow the same... 👍

1 Like

Shivam gupta (student) (263 Points)
Replied 05 June 2018

sir whether there is any provision in this regard. if yes then please share it. Because i have heared from some one that any incentive recorded as income in books will be treated as supply and we will have to pay GST on it.

Jagdish Akbari (Tax Consultant) (189 Points)
Replied 05 June 2018

No provision GST applicable

RAJA P M ("Do the Right Thing...!!!") (127334 Points)
Replied 05 June 2018

GST not applicable...

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 05 June 2018

Do what your supplier done : If in credit Note the GST is being charged , you cannot show the same in income .

But as a turnover secheme mostly are without GST , so can be shown to income side (because For one bill , one credit note can only be issue)

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 05 June 2018

same problem with one of my party he recieved incentives from company for post sales nearly 2 lakhs in vat regime and the vat department issued notice to him to pay vat

1 Like

Vinod Babu (24191 Points)
Replied 05 June 2018

Yes you are right Mr Mahesh. I Aldo faced same problem in vat regime.

1 Like

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 05 June 2018

What is the solution whether we have to pay or not

mukesh k ahluwalia (accountant) (22 Points)
Replied 28 November 2018

In my opinion whenever you receive incentives on purchase from supplier then againt their credit note, you please issue debit note for GST to reduce your input in GST as applicable in VAT regime, then your supplier charged GST will take as input and by this GST is applies on incentive and there is no body is going to loose the sum and GST compliance also