Cos can claim credit for GST paid on dealer incentives: AAR
The Authority for Advance Rulings (AAR), Karnataka bench, in the case of Orient Cement that offered target-based incentives to its distributors, has recently held that issuing gold coins or white goods to them on meeting their targets is neither a ‘gift’ nor a ‘permanent transfer or disposal of business assets’.
In other words, the cement manufacturer would be able to claim a credit for the GST paid on purchase of coins or white goods against its own GST liability. At the same time, the AAR also held that transfer of goods under the incentive schemes will be a taxable supply.
