This refers to “Indirect tax board removes circular on GST, but confusion remains” by Indivjal Dhasmana (October 7). It was intriguing to learn that despite the Central Board of Indirect Taxes and Customs (CBIC) removing a controversial circular that imposed goods and services tax (GST) on post-sale discounts by dealers, the resultant confusion -- that arose with the issuance of the said circular -- simply refuses to go away. Mind you, this board had unimaginatively issued a circular (in June 2019) which said that dealers will have to pay 18 per cent GST on the entire amount of the post-sale discount that they get from the suppliers of goods if the supplier asks them to pass on the concessions to the end consumer(s).
What else could explain the fact that notwithstanding the withdrawal thereof by the CBIC, its over-enthusiastic field officers continue to harass the dealers. There doesn't seem to be enough clarity as to how the situation of post-sale discounts should be dealt with. Such a hit and miss scenario is proving to be a double whammy for the trader community in the absence of clarity on various inter-linked issues involved here. In fact, all credit truly goes to the extant GST regime which sadly continues to be in its operational infancy though it was “born” as early as on July 1, 2017.
S Kumar, New Delhi
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