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Advocate (CA) Arup Dasgupta presented this PPT giving clarification on the treatment of secondary or post-sale discount with reference to Circular No. 251/08/2025-GST dated 12.09.2025
“The government’s clear demarcation between trade discounts and promotional services will significantly reduce interpretational disputes and provide greater certainty in compliance for the industry, paving the way for a more streamlined GST regime,” Agarwal said.
CBIC issued Circular no. 251/08/2025-GST dated 12.09.2025 providing Clarification on various doubts related to treatment of secondary or post-sale discounts under GST
The Hon’ble Delhi High Court in the case of Vardhaman Electronics held that the discount given by manufacturers to retailers, prima facie, cannot be considered as a consideration for services rendered by the retailer.
The AAR, Andhra Pradesh, in the matter of Vedmutha Electricals India Pvt. Ltd. ruled that assessee is eligible to take full credit of GST charged in invoice issued by the supplier even though later commercial/financial credit note has been issued.