MANAGEMENT

Detailed explanation-1: -Value of Supply = (Monetary Consideration + In-kind Consideration)-GST on Total Consideration Note: The value of supply includes cess, billable expenses, subsidies, penalties, and all taxes except GST (and any other charges that may or may not be included in the price of the goods and services supplied).

Detailed explanation-2: -It has also been provided that where the goods being supplied are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to 90% of the price charged for the supply of goods of like kind and quality by the recipient to his unrelated customer.

Detailed explanation-3: -Subsidy directly linked to the price received from a non-Government body is includible in the value in terms of section 15(2)(e) of CGST Act, 2017. Since discount is known at the time of supply, it is deductible from the value in terms of section 15(3)(a) of CGST Act, 2017.

Detailed explanation-4: -Value of supply includes all the taxes, duties, cesses, fees and charges except the CGST, SGST, UTGST and GST cess if charged separately by the supplier. Thus we can say that GST and GST cess are not part of Taxable value but other taxes & duties, cesses, fees and charges are part of the taxable value.

Detailed explanation-5: -(1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.