Section 15 of CGST Act, 2017 value of taxable supply under GST

Value of taxable supply, sec  15 of CGST Act,2017

 

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The below post explains about value of taxable supply under section 15 of CGST Act,2017.

 

Section 15 of CGST Act, 2017 explains value of taxable supply as below: (The amendments if any will also be updated here soon).

 

The extract of Section 15 of CGST Act,2017 quoted below:

 

15  value of taxable supply

 

15. (1) The value of a supply of goods or services or both shall be the transaction

value, which is the price actually paid or payable for the said supply of goods or services or

both where the supplier and the recipient of the supply are not related and the price is the

Section 15 of CGST Act, 2017 value of taxable supply under GSTsole consideration for the supply.

(2) The value of supply shall include–––

(a) any taxes, duties, cesses, fees and charges levied under any law for the time

being in force other than this Act, the State Goods and Services Tax Act, the Union

Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation

to States) Act, if charged separately by the supplier;

(b) any amount that the supplier is liable to pay in relation to such supply but

which has been incurred by the recipient of the supply and not included in the price

actually paid or payable for the goods or services or both;

(c) incidental expenses, including commission and packing, charged by the

supplier to the recipient of a supply and any amount charged for anything done by the

supplier in respect of the supply of goods or services or both at the time of, or before

delivery of goods or supply of services;

(d) interest or late fee or penalty for delayed payment of any consideration for

any supply; and

(e) subsidies directly linked to the price excluding subsidies provided by the

Central Government and State Governments.

Explanation.––For the purposes of this sub-section, the amount of subsidy

shall be included in the value of supply of the supplier who receives the subsidy.

(3) The value of the supply shall not include any discount which is given––

(a) before or at the time of the supply if such discount has been duly recorded in

the invoice issued in respect of such supply; and

(b) after the supply has been effected, if—

(i) such discount is established in terms of an agreement entered into at or

before the time of such supply and specifically linked to relevant invoices; and

(ii) input tax credit as is attributable to the discount on the basis of

document issued by the supplier has been reversed by the recipient of the

supply.

(4) Where the value of the supply of goods or services or both cannot be determined

under sub-section (1), the same shall be determined in such manner as may be prescribed.

(5) Notwithstanding anything contained in sub-section (1) or sub-section (4), the

value of such supplies as may be notified by the Government on the recommendations of the

Council shall be determined in such manner as may be prescribed.

Explanation.—For the purposes of this Act,––

(a) persons shall be deemed to be “related persons” if––

(i) such persons are officers or directors of one another’s businesses;

(ii) such persons are legally recognised partners in business;

(iii) such persons are employer and employee;

(iv) any person directly or indirectly owns, controls or holds twenty-five

per cent or more of the outstanding voting stock or shares of both of them;

(v) one of them directly or indirectly controls the other;

(vi) both of them are directly or indirectly controlled by a third person;

(vii) together they directly or indirectly control a third person; or they are

members of the same family;

(b) the term “person” also includes legal persons;

(c) persons who are associated in the business of one another in that one is the

sole agent or sole distributor or sole concessionaire, howsoever described, of the

other, shall be deemed to be related.

 

The above information clarifies about value of taxable supply under section 15 of CGST Act,2017.  

 

If you have any comments about Section 15 of CGST Act, 2017 explaining value of taxable supply, share below your thoughts:

 

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Comments


Dharmesh Doshi: If I want to add Delivery Charges in any Sales Invoice of say for e.g. 10 items having Gst Rate @ 18 % then after all items are added, how to add Delivery Charges or any other Expenses in the Sales Invoice How to calculate Gst on it, how to print in Ssles Invoice and How to File in Gst Return ?

Praveen Tiwari: We are Dealing In Tax Free & Taxable Goods How We Will Treat Packing Charges in Our Different Bills Like 1. Bill of Taxfree Goods 2. Bill of GST @ 5% 3. Bill of GST @ 12% 4. Bill Of GST @ 18% 5. Bill Of GST @ 28% the Material is Used for Packing is Fully Taxable. Please Inform

Deepak Maheshwari: We are dealing in industrial belts in U.P. procured by us from other states. Our principals charge Courier charges as Freight and Packing & Forwarding after applying GST on Taxable value of belts. GST is not charged on the Freight & P&F by them. We in turn have been charging our customers in the same way, i.e., Taxable value + GST + Freight + P&F. Now some customers require us to charge GST on the Freight and P&F also. What is correct because our principals do not do that way. We are registered under GST.

Dilip Patel: We are manufacturer and supplying goods to govt.department on Tender and Order basis. our order is continue with the old terms and conditions.our supply terms in invoice is Ex-work price+Excise+Freight+VAT=Total value of supply.Now as per GST, where we have to charge the Freight,i.e-After GST or Before GST Tax. if we charge after GST tax than we have to paid RCM charge or purchaser have to pay RCM charge. If we have to pay charge RCM and than we can take that charge as ITC. Please clarify

Subramaniam: I am working in a textile ready made shop and a subject that has always been in discussion is..... The rate of tax for ready made goods for value of supply above Rs 1000 is 12% Can rate of tax of the goods which was above Rs 1000 be reduced from 12% to 5% if the value of the goods goes below Rs 1000 after application of discount thank You with regards Subramaniam

S Kannan: We are doing trading business (both sales & Service). We have transported the consignment from one location to another location for the customer through local transport. Can we raise the invoice towards transportation charges.If yes, please inform the applicable GST

mohit: can anyone elaborate the subsection 3 of section 15 i.e discount issue

Rutvik Wadkar: Import of Service $100 @64 =Rs. 6400 Payment $100 @63 -Rs. 6300 18% IGST. IGST amount? 6300 x 18% or 6400 x 18% ? Please Guide

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