Discount vs Incentive

1646 views
User Avatar

Sr.ACCOUNTANT
261 Points Posted on 30 July 2020
Is any difference between Discount and Incentive Under GST?

Any definition in Gst for incentive ?

Is incentive is service attract Gst?
1 Reply Share Follow
On 30 July 2020 at 17:40 Report
Replies (6)
Quick Summary
This discussion clarifies the distinction between discounts and incentives within the GST framework. Discounts typically reduce the taxable value of goods to encourage larger purchases. Incentives, often paid to sales staff to boost sales, may be considered a separate service attracting GST. The taxability of post-sale discounts without prior agreement is also explored, with a note that incentives related to non-GST supplies, like petrol and diesel, are not taxable.

User Avatar

Practice
4510 Points Posted on 30 July 2020
Originally posted by : NAVEEN
Is any difference between Discount and Incentive Under GST? Any definition in Gst for incentive ? Is incentive is service attract Gst?

Kindly tells related Service and Goods in which Discount or Incentive are given.

 

Thanks with Regards

Ravi SADhiyan

 

1 Reply
On 30 July 2020 at 18:02
User Avatar

Sr.ACCOUNTANT
261 Points Posted on 30 July 2020
Electronic goods
1 Reply
On 30 July 2020 at 20:24
User Avatar

Practice
4510 Points Posted on 31 July 2020
Originally posted by : NAVEEN
Electronic goods

 

Difference in Discount and Incentive

1- Discount is give to customer to attract customer for purchase more products. Discount is reduced from total taxable value.

2- Incentive is give to sales person to encourage to sale more product to customer. Incentive as a service consideration to pay sales person .

 

Reply
On 31 July 2020 at 08:35
User Avatar

1011 Points Posted on 31 July 2020
No gst on discount subject to conditions.
taxability on incentives, two views, I m of the view that it is taxable as it is a different service other than trading goods.
1 Reply
On 31 July 2020 at 12:48
User Avatar

Sr.ACCOUNTANT
261 Points Posted on 31 July 2020
Yes But is any definition/ or any other criteria to identify discount and incentive
like post sale discount with out agreement

Is any chance to consider post sale discount without agreement as incentive which attract gst .
Reply
On 31 July 2020 at 13:11
User Avatar

BUSINESS DEVELOPMENT MANAGER
1697 Points Posted on 31 July 2020

GST can be levied only on a consideration received for a taxable supply of goods or services or both. Since your retail sale of petrol & diesel is out of the scope GST net, incentives received by you are against Non-GST supply. Hence such incentives are also not taxable under GST

Reply
On 31 July 2020 at 13:27

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. INCLUDING PROFITS FROM REIT / INVIT IN SHARE TRADI
  2. Tempsens Instruments IPO GMP Allotment Listing dat
  3. Upload Type - Correction. Not showing in TDS filli
  4. Partnership tax audit query
  5. ERROR SHOWING PARTNER REMUNERATION ITR 3 TIME OF V
  6. Form 146 foreign remittance us citizen
  7. GST 16(2) notice
  8. Which GSTR-1 upload error do you hit most often?
  9. Need advice regarding accounting fees
  10. Is it possible to get a refund for an accidental o

More recent discussions | Post

Related Topics :

Loading