Post-sale discount under GST: A clear position may help boost festive sales

Discounts are a well-understood concept commercially, as well as under tax laws

Readers may accuse me of hyperbole, but from my vantage point, it appears that never has removal of certain ambiguities/errors in tax laws been so critical for the Indian economy — I refer here to the erroneous clarifications with respect to GST on post-sale discounts (Circular No. 105/24/2019-GST, dated June 28, 2019). 

We all know that India’s GDP fell to a 6-year low of 5 per cent in the first quarter of FY20. Based on media reports, there is a broad consensus among various consumer-facing industry sectors that the October-December festive quarter will be crucial for a revival in demand, which