Issuance of various circulars on certain issues pertaining to Post Sale Discount under GST

The 56th meeting of the GST Council was held in New Delhi on September 03, 2025 under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council inter-alia made the recommendations relating to changes in GST tax rates, provide relief to individuals, common man, aspirational middle class and measures for facilitation of trade in GST.

Issuance of circular on certain issues pertaining to Post Sale Discount: In order to remove ambiguity and legal disputes, the Council recommended to provide clarification on certain issues pertaining to Post Sale Discount namely, –

1. non-reversal of Input Tax Credit on account of post-sale discount through financial/commercial credit note;
2. treatment of the post-sale discount provided by manufacturer to the dealer as additional consideration, in the transaction between dealer and end-customer;
3. treatment of post-sale discount as consideration lieu of promotional activities etc. performed by the dealer.

The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2163555