UPS Ltd. of Hyderabad supplied a power generator to TK Tyres Ltd., of Tamil Nadu and charged the following amounts to the supply: ₹ Price of generator before taxes and cash discount 9,00,000 Other charges not included in

CS Executive · Tax Laws · PYQS · June 2019
UPS Ltd. of Hyderabad supplied a power generator to TK Tyres Ltd., of Tamil Nadu and charged the following amounts to the supply: ₹ Price of generator before taxes and cash discount 9,00,000 Other charges not included in the above price: Packing charges 15,000 Designing charges for the generator 18,000 Freight 12,000 Transit insurance 12,000 Following additional information are also furnished: Rate of GST - 18% A cash discount @ 3% on price is given to the customer at the time of supply and the same is also recorded in the invoice. Calculate the value of supply and the GST payable.

Answer & Explanation:

Computation of Value of Supply Particulars Amount (₹) Price of generator 9,00,000 Add: Packing charges [Note 1] 15,000 Designing charges [Note 1] 18,000 Freight [Note 1] 12,000 Transit insurance [Note 1] 12,000 9,57,000 Less: Cash Discount @3% on price of ₹900000 [900000*3/100] [Note 2] (27,000) Value of supply 9,30,000 IGST@ 18% [930000*18/100] 1,67,400 Notes: Incidental expenses like packing, designing, freight and insurance are the inclusions for the computation of value of supply. Discount given before or at the time of supply and recorded in invoice is not to be included while computing the value of supply.

Topics: GST

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