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GST - Section 15(3) of the CGST Act - Section 2(6), Section 13(3)(a) of the IGST Act - Trade Discount, Target Incentive, Valuation, Export of Service – applicant is a reseller of Intel products, which they purchase from various distributors of Intel Inside US LLC (IIUL) - Applicant entered into agreement with IIUL under Intel Authorized Components Supplier Program under which the applicants earn certain incentives from IIUL as a percentage of performance to quarterly target – Whether incentive received from IIUL under the said Scheme could be considered as Trade Discount as per the provisions of Section 15 of the CGST Act – HELD - the applicant purchases the goods from the distributors and not directly from IIUL – applicant is not receiving discounts from the said distributors. Therefore, there is no supply from IIUL to the applicant, there is no sale transaction of goods in the instant case between the applicant and IIUL, hence, ‘incentives’ received by the applicant from IIUL will not be covered under the provision of Sec. 15(3) of the CGST Act - the said ‘incentives’ cannot be treated as Trade Discount given by IIUL to the applicant because the supply of goods in respect of which the incentives are purported to be given are rendered by the distributors and not by IIUL - the incentive received by the applicant from Intel Inside US LLC under Intel Approved Component Supplier Program cannot be considered as Trade Discount – further, since incentives is flowing from IIUL to the applicant, in the absence of supply of goods it appears that IIUL is paying consideration to the applicant for receiving marketing services and the said amounts received by the applicant cannot be considered as Trade Discounts - If not considered as Trade Discount and same is considered as supply than whether it will qualify as export of service – Determination of place of service for the Incentives received – HELD - In the instant case, the marketing services are provided in respect of goods which are made physically available by the recipient of services (IIUL, through its distributors) to the supplier of marketing services (applicant), in order to provide the services. Therefore, as per Section 13(3)(a) of the IGST Act, the place of provision of services is the location of the supplier of services i.e. the applicant, which is in India. Hence, the impugned supply does not qualify as export of services
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