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When Discounts Arrive Late: A Practical Guide to Post-Sale Discounts & Credit Notes Under GST
Volume rebates, scheme discounts, year-end incentives, rate protection, price-drop support - in real life, most big-ticket business happens after the basic invoice is raised. Commercial teams liberally promise "extra 2% at year-end", but the tax team is then left asking: Can we reduce GST already paid on the original invoice? Does the dealer have to reverse ITC - and how do we prove it? Is this just a discount...... Read More
Post-sale discounts-year-end schemes, turnover rebates, "corporate employee" price support, co-branding payouts-have been litigation magnets since GST began. CBIC's Circular No. 251/08/2025-GST dated 12 September 2025 settles three core questions: ITC reversal on financial/commercial credit notes, whether manufacturer-to-dealer discounts are "inducement/consideration" for the dealer's sale to the end customer,....... Read More