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Dealers to get input tax credit on GST for the post-sale discounts

The dealer would be eligible to get input tax credit on entire amount of GST paid if the discount is given after the sale of product

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3 min read Last Updated : Jun 29 2019 | 12:26 AM IST

Dealers will have to pay 18 per cent goods and services tax (GST) on the post-sale discount that their company gives to them if it asks them to do promotional activities or pass on the concessions to the end consumer.

However, if discount is given to them without any obligation, he would not be needed to pay GST on it. These kinds of discounts are generally prevalent in automobile, fast-moving consumer goods, consumer durables and pharmaceutical companies.

Also, the dealer would be eligible to get input tax credit on entire amount of GST paid if the discount is given after the sale

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