This circular clarifies the GST treatment of post-sale or secondary discounts: where such discounts are passed through financial or commercial credit notes without any reduction in the supplier’s original GST liability, the recipient need not reverse ITC, and the discount will simply be treated as a commercial price adjustment. However, if discounts are contractually linked to supplies made to end customers (e.g., where the manufacturer requires the dealer to sell at reduced rates under an agreement with the end customer), such amounts may be considered as part of the dealer’s transaction value and taxed accordingly. Further, where dealers undertake promotional, marketing, or brand-building activities under a separate agreement for a specified consideration, these will be treated as independent taxable supplies of services; but if no such agreement or separate consideration exists, the mere passing of a discount will not be construed as a supply of services.