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Quantity discount

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SC Charuhas

student

24 Points Posted on 06 February 2020

Is quantity discount given by the manufacturer is exempted in the hands of retailer?

ex. If me as a mobile shop vendor purchase 1000 nos of oppo mobile phone and I was able to sale the whole mobile within a month or two. Than the manufacturer giving me a discount on quantity basis and asking me to pay them only for 900 nos. Or what if they are giving other kind of quantity discount? Is any of them are exempted under GST

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Quick Summary

This discussion explores whether quantity discounts provided by manufacturers are exempt from GST for retailers. It clarifies that such discounts are generally allowed as a deduction if agreed upon before the supply of goods. The key question is whether the recipient needs to pay GST on the quantity discount received.