Implications of GST on post-sale discounts – for consumer sector

Sales promotions have been used to expand the consumer base and enhance competitiveness. One of the purposes of a consumer promotion is to elicit a direct impact on the purchase behaviour of the companies. Consumers are very price sensitive when it comes to consumer-packaged goods as these products make up a major part of their monthly spending and FMCG brands have always competed aggressively on prices. Various schemes are offered to suppliers by manufacturers to boost their supplies as part of their promotion drive.

In this publication, we have tried to discuss all such schemes wherein commercial credit notes are issued to bring in the effect of various discounts.

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