2026-VIL-16-AAAR
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SGST AAAR

GST – Tamil Nadu AAAR - Taxability of post-sale non-monetary benefits (Cash discount through credit note and non-monetary benefits like Gifts, compliments, tickets for entertainment shows and trips) received by a wholesaler from manufacturers - The appellant had applied for an Advance Ruling, which held that the benefits received by the appellant is ‘consideration’ towards ‘supply of support service’ and therefore would be covered under Section 7 of CGST Act, 2017 - Whether the non-monetary benefits received by the appellant from the manufacturers and wholesale traders should be considered as a "supply" under the GST Act and subject to GST – HELD - The appellant had initially provided incorrect facts to the Authority for Advance Ruling, stating that it was a franchise of the paint manufacturers and there was no prior agreement regarding the provision of non-monetary benefits. However, during the appeal proceedings, the appellant clarified that it purchases paints from the manufacturers on a principal-to-principal basis and sells them independently to various customers, and the manufacturers extend monetary or non-monetary post-sale benefits to the appellant under dealer schemes based on prior agreements - The change in facts presented by the appellant between the original application and the appeal proceedings made it difficult for the AAAR to pass an order on the ruling issued by the AAR. Accordingly, the matter is remanded to the original Authority for Advance Ruling to take up the matter afresh and pass a ruling by following the principles of natural justice, considering the correct facts presented by the appellant – Ordered accordingly
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GSTAT Appeal filed wrongly...
By CA Vivek Jalan

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