AAR of Maharashtra rules out GST refund for post-sales discounts

In a setback to the common market practice of trade discounts, the Authority for Advance Rulings (AAR) of Maharashtra has ruled out a goods and services tax (GST) refund in the case of post-sales discounts offered by manufacturers to dealers. 

The case pertains to UltraTech Cement, which sought clarity over the possibility of GST refund in the case of discount offered to its dealers after sale. The move is expected to result in a slew of litigation and prompt the industry to re-examine the discount schemes offered to liquidate old inventories or on bulk sales.

The applicant, UltraTech Cement, cites an example