Circular on Post Sale Discount

J the App by JustIDT examines the Post-Sale Discounts under GST. Consequent to the 56th GST council Reco on the issue, the CBIC, vide Circular No. 251/08/2025-GST (12.09.2025), has addressed long-standing ambiguities around secondary/post-sale discounts. The clarifications bring relief on three critical fronts: No ITC reversal required for financial/commercial credit notes without tax adjustment. Trade discounts is not considered as a "consideration", unless tied to manufacturer–end customer agreements. Ordinary discounts are not service payments; only defined promotional services attract GST. A big step towards reducing litigation and bringing certainty to trade