| Sr. No. | Types of Discount | Examples | Whether considered as Supply | Availability of ITC to supplier |
| 1 | Free Samples andGifts | Drug samples given to dealers by pharmaceutical companies | No.This is not a Supply as is made without consideration. | No.ITC shall not be available for these goods as these are given away for free. |
| 2 | “Buy one get onefree” offer | Buy one soap and get one soap free | Yes.It would be treated as Mixed/Composite Supply. | Yes.ITC will be available as it is treated as supply of two goods for the price of one. |
| 3 | Discountsincluding ‘Buymore, save more’offers | Get 10 % discount for purchases above Rs. 5,000/-, 20% discount for purchase above Rs.10,000 & so on | Yes.Discounts offered are known before the supply hence reduced to calculate the taxable value. | Yes.ITC for such goods shall be allowed as discount is given as per GST regulations. |
| 4 | SecondaryDiscounts | A supplied 10000 packets of biscuits to B @10/- each. Afterwards A revalued those at Rs. 9 each and issues Credit note for Re.1 for each packet. | Yes.Discounts will not be reduced to calculate taxable value as the same wasn’t known before the supply. Credit Note will be offered in these cases. | Yes.No impact on availability or otherwise of ITC in hands of supplier as both are separate transactions. |
