Section 15 of GST – Value of Taxable Supply under GST Regime

Section 15 of GST Act 2017 – Value of Taxable Supply under GST Regime. Check out details for GST Section 15 as per CGST Act 2017. Complete Analysis of GST Section 15, Section 15 of GST provide details for Value of Taxable Supply under GST Regime. Explanation of Goods and Service Tax all Sections.

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Section 15 of GST Act 2017 – Value of Taxable Supply

(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.

(2) The value of supply shall include-

  • (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier;
  • (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;
  • (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;
  • (d) interest or late fee or penalty for delayed payment of any consideration for any supply; and
  • (e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments.

Explanation.––For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy.

(3) The value of the supply shall not include any discount which is given–

  • (a)before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and
  • (b)after the supply has been effected, if—
    • (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and
    • (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply.

(4)Where the value of the supply of goods or services or both cannot be determined under sub-section (1), the same shall be determined in such manner as may be prescribed. (1), the same shall be determined in such manner as may be prescribed.

(5)Notwithstanding anything contained in sub-section (1) or sub-section (4), the value of such supplies as may be notified by the Government on the recommendations of the Council shall be determined in such manner as may be prescribed

Explanation.—For the purposes of this Act,- 

(a) persons shall be deemed to be “related persons” if –

  • (i) such persons are officers or directors of one another’s businesses;
  • (ii) such persons are legally recognised partners in business;
  • (iii) such persons are employer and employee;
  • (iv) any person directly or indirectly owns, controls or holds twenty-five per cent. or more of the outstanding voting stock or shares of both of them;
  • (v) one of them directly or indirectly controls the other;
  • (vi) both of them are directly or indirectly controlled by a third person;
  • (vii) together they directly or indirectly control a third person; or
  • (viii) they are members of the same family;

(b) the term “person” also includes legal persons;

(c)persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole concessionaire, howsoever described, of the other, shall be deemed to be related.

Related Provisions of the Statute

Section or Rule (CGST / SGST)Description
Section 2(1)Definition of Actionable Claim
Section 2(5)Definition of Agent
Section 2(17)Definition of Business
Section 2(31)Definition of Consideration
Section 2(52)Definition of Goods
Section 2(73)Definition of Market value
Section 2(93)Definition of Recipient
Section 7Section 7 Scope of Supply
Section 9Levy and Collection
Rule 27Value of supply of goods or services where the consideration is not wholly in money
Rule 28Value of supply of goods or services or both between distinct or related persons, other than through an agent
Rule 29Value of supply of goods made or received through an agent
Rule 30Value of supply of goods or services or both based on cost
Rule 31Residual method for determination of value of supply of goods or services or both
Rule 31AValue of supply in case of lottery, betting, gambling and horse racing
Rule 32Determination of value in respect of certain supplies
Rule 32AValue of supply in cases where Kerala Flood Cess is applicable
Rule 33Value of supply of services in case of pure agent
Rule 34Rate of exchange of currency, other than Indian rupees, for determination of value
Rule 35Value of supply inclusive of integrated tax, central tax, State tax, Union territory tax

Introduction

Consideration is quid pro quo in a contract and price is the consideration expressed in money terms. Value is the price prevalent when a transaction takes place under controlled conditions. Valuation is the study of all those circumstances and assessment of steps to reverse or rectify the effect of contractual or other arrangements that may suppress or understate the value of the transaction.

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