Kerala’a Appellate Authority for Advance Ruling has upheld that additional discount reimbursed by a company to its distributor will be added to the consideration payable by the customer to the distributor. This sum will attract GST in the hands of the distributor.Experts feel that as there are divergent views on applicability of GST on dealer discount, detailed clarification from Finance Ministry is warranted to minimise disputes.The appellant, Kottayam-based Santhosh Distributors, is an authorised distributor of Castrol, a global company engaged in industrial and automotive lubricants. The appeal mentioned the distributor is paying the tax due as per invoice value issued by them and availing the input tax credit (ITC) shown in the inward invoices received by them from the company or from stockist.According to the appeal, Castrol has two types of dealers — normal dealers and workshops and both get supply from distributor like the appellant. Through its distributor, the company gives discounts based on SKU or quantity to workshops. Discounts are also available for normal dealers through distributor. While the distributor is obliged to pass on the discount, he is also entitled to receive them from the company in addition to discount/rebate of 4.3 per cent, as mentioned in the agreement. Here the scheme in question is SKU discount offered by the company in relation to sale by its distributor.