Targets Based Incentives earned by Reseller not amount to Trade Discount; 18% GST Applicable: AAAR [Read Order]

Targets Based Incentives - Targets Based Incentives earned by Reseller - Targets - Incentives - Reseller - Trade Discount - GST Applicable - GST - AAAR - Authority for Advance Ruling - taxscan

While enhancing the AAR’s decision, the Maharashtra Appellate Authority for Advance Ruling (AAAR) decided that 18% Goods and Services Tax (GST) is applicable to incentives earned by the reseller based on quarterly targets. Since the incentive received does not qualify for a trade discount, GST must be paid. The appellant, M/s MEK Peripherals (India) Private…

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