Nisha Enterprises had made supplies of ₹9,00,000 to D.K. Enterprises on which a tax of ₹90,000 was levied by Municipal Authorities. The CGST and SGST chargeable on the supply @ 5% was of ₹45,000. Packing charges of ₹25,0

CS Executive · Tax Laws · PYQS · December 2018
Nisha Enterprises had made supplies of ₹9,00,000 to D.K. Enterprises on which a tax of ₹90,000 was levied by Municipal Authorities. The CGST and SGST chargeable on the supply @ 5% was of ₹45,000. Packing charges of ₹25,000 are not being included in the price of supply value of ₹9,00,000. Nisha Enterprises received a subsidy of ₹60,000 from an NGO on the sale of such goods and the price mentioned above of ₹9,00,000 is after taking into account the subsidy so received. A discount of 1% is also offered by Nisha Enterprises as being mentioned on the invoice. Determine the value of supply as per the provision of the CGST Act, 2017.

Answer & Explanation:

The value of supply being made to DK Enterprises by Nisha Enterprises shall be as under:- Particulars Amount (₹) Price of supply charged 9,00,000 Add: Tax charged by Municipal Authorities 90,000 Packing Charges 25,000 Subsidy from NGO 60,000 Total Value 10,75,000 Less: Discount @ 1% of 9,00,000/- 9,000 Value of Supply 10,66,000 Notes: CGST and SGST is not to be included in the determination of value of supply since the tax is charged post determination of that value. Subsidy since received from a non-government body is to be added back to determine the value of supply.

Topics: GST Law

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