Value Of Supply – Goods And Services Under GST (Detailed Blog)

Value of Supply

In GST routine it is critical to think about the estimation of products or administrations or both on which duty is to be paid. According to CGST Act, 2017 alongside guidelines recommended the arrangements for deciding the estimation of supply of merchandise or administrations have been made applicable in various conditions and to various individuals.

Value of Taxable supply

  • Which segment portray the value of supply?
  • Value of taxable supply according to segment 15
  • Considerations in the Value of supply
  • Taxes, duties,cesses,fees and Charges
  • Sum brought about by beneficiary for the benefit of provider
  • Incidental costs and sum charged for exercises done before delivery
  • Delayed payment charges
  • Subsidies
  • Rejections in the Value of supply
  • Discounts given on or before supply
  • Discount given after the supply (Post supply rebate)
  • Value can’t be resolved according to the arrangements
  • Value of taxable of supply where the thought isn’t entirely in cash (Rule 27)
  • Value of taxable of supply where supply between particular or related people other than agent( Rule 28)
  • Value of taxable of supply where supply made through a specialist (Rule 29)
  • Value of taxable of supply as per rule 30
  • Value of taxable of supply as per rule 31
  • FAQs

Which area depict the value of supply?

Section 15 of CGST Act, 2017 gives the arrangements to deciding the value of goods and services. It provides the mechanism to know how to calculate the value of goods or services when supply of goods and services is made between unrelated persons and when the price is the only consideration of the supply. Provisions of the value of supply under CGST act have also been made applicable to IGST Act vide Section 20 of the IGST Act.

Government has presented different criteria for the assurance of value of supply so now we will see how to ascertain the value of supply according to Section 15 of CGST Act, 2017.

Value of Taxable Supply according to segment 15

Arrangements identifying with estimation of value of supply are as under-

According to this segment estimation of value of supply is transaction value which is the price actually paid or payable for the supply of goods or services and the price is the sole consideration. Also, where the supplier and the recipient are not related or unrelated parties.

So we can say that if the supplier and recipient are not related and the cost is the sole thought then the estimation of taxable supply is the Transaction Value.

Incorporations in the Value of supply

There are few components which is required to be incorporated into the value of taxable supply.

  • Taxes, duties,cesses,fees and Charges
  • Sum caused by recipient on behalf of supplier
  • Incidental costs and amount charged for exercises done before delivery
  • Delayed payment charges
  • Subsidies

Taxes, Duties, Cesses, Fees and Charges

Value of supply incorporates all the expenses, obligations, cesses, expenses and charges with the exception of the CGST, SGST, UTGST and GST cess whenever charged independently by the supplier. In this manner we can say that GST and GST cess are not part of Taxable value but rather different taxes and obligations, cesses, fees and charges are part of the taxable value.

For further details or in case of any queries, please contact Certicom.

 

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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

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