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Discount vs Incentive

NAVEEN (Sr.ACCOUNTANT) (241 Points)

30 July 2020

Is any difference between Discount and Incentive Under GST?

Any definition in Gst for incentive ?

Is incentive is service attract Gst?

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6 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 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 Like

NAVEEN (Sr.ACCOUNTANT) (241 Points)
Replied 30 July 2020

Electronic goods

1 Like

Ravi SADhiyan (Practice) (4510 Points)
Replied 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 .

Kishor Lulla (784 Points)
Replied 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 Like

NAVEEN (Sr.ACCOUNTANT) (241 Points)
Replied 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 .

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 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