GST(Applicable for MAY’21/NOV’21)

VALUE OF SUPPLY
VALUE OF TAXBALE SUPPLY [ section 15(1)]
(1) Value of taxable supply to be transaction value:
 Price actually paid or payable for the said supply
 Supplier and recipient are not related and
 Price is the sole consideration for the supply
(2) Inclusions:
Taxes, duties, cesses, fees and charges except CGST,SGST, UTGST & GST
compensation cess. (if charged sperately). TCS under Income Tax not included.
Amount incurred by recipient on behalf of the supplier. (agar customer direct
payment bhi karega third party ko toh bhi include karenge). Payment made on
own account of recipient – not to be included.
Incidental expenses and amount charged for activities done before delivery
(commission, packing, inspection or certification charges, installation and testing
charges, outward freight, transit insurance)
Charges for delayed payment of consideration.
Subsidies (govt wali exclude karenge and private wali include)
(3) Exclusions:
 Discounts:
 Discount given on or before supply
 Post supply discount:
 Specially linked to relevant invoices and
 Input tax credit as is attributable has to be reversed.
 Non deductible discount (year end discount after reviewing dealer
performance)
CIRCULARS
֎ Free samples and gifts: not regarded as supply and ITC not admissible.
֎ Buy one get one free offer: value already included and ITC admissible.
֎ Staggered discount/volume discount – deductible.
֎ Secondary discount not deductible.
֎ Valuation of supply made by a component manufacturing using moulds and dies
owned by original equipment manufacturers (OEM) sent free of cost to him – value of
such moulds and dies not to be added to the value of supply made by component
manufacturer. If under obligation of component manufacturer such moulds and dies
supplied by OEM, then amortized value to be added in value of component.
If value cannot be determined on the above basis then shall b determined on basis of rules

ARHAM INSTITUTE, CA VARDHAMAN DAGA, 9039600091 Page 1