From the following information determine the value of taxable supply as per the provision of section 15 of the CGST Act, 2017. Contracted value of supply excluding GST (inclusive of cost of primary packaging of Rupees 25

CS Professional · Advanced Tax Laws · PYQS · June 2021
From the following information determine the value of taxable supply as per the provision of section 15 of the CGST Act, 2017. Contracted value of supply excluding GST (inclusive of cost of primary packaging of Rupees 25,000 and protective packing at the request of customer of Rupees 15,000) ₹ 12,50,000 Weighment charges shown separataly in the invoice ₹ 9,500 Commission paid to local Agent on instruction of supplier ₹ 5,000 Freight and insurance charges paid by receipient on behalf of supplier ₹ 8,000 Prompt payment discount, indicated in invoice 1%, if payment made within one month. The buyer availed the discount.

Answer & Explanation:

Calculation of Taxable Supply Particulars ₹ Contracted Value of Supply (Cost of Primary and Protective Packaging at the request of the customer) [Note 1] 12,50,000 Weighment Charges 9,500 Commission paid to Local Agent on instruction of supplier 5,000 Freight and insurance charges paid by recipient on behalf of supplier 8,000 Total 12,72,500 Less: Discount @ 1% 12,500 Taxable Value 12,60,000 Note 1: As per Section 15(2) (c) of Central Goods and Services Tax Act, 2017, incidental expenses, including commission and packing charged by the supplier to the recipient of a supply should be included in the value.

Topics: GST - Valuation

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