Value of Taxable Supply under GST Regime: 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. now check more details for Value of Taxable Supply under GST Regime...
Value of Taxable Supply under GST Regime
Value of a supply of goods or services or both shall be the transaction value- where the supplier and the recipient of the supply are not related and
- the price is the sole consideration for the supply.
- Consideration is not wholly in money
- Supplier and related is related
- Reason to doubt the transactions value
- Business transaction done by Pure Agent, Insurer, Money Changer, Air travel agent and distributor or selling agent of lottery
Related Person in GST Regime
- such persons are legally recognised partners in business;
- such persons are employer and employee;
- 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;
- one of them directly or indirectly controls the other
- both of them are directly or indirectly controlled by a third person;
- together they directly or indirectly control a third person; or
- they are members of the same family;
The value of supply shall include-
- a) any taxes, duties, cesses, fees and charges levied under any law other than CGST/SGST/UTGST/ GST(Compensation to States) Act.;
- b) any amount the supplier is liable to pay but incurred by the recipient and not included in the price actually paid or payable;
- c) incidental expenses, including commission and packing, charged by the supplier and
- d) any amount charged by supplier for anything done at the time of, or before delivery of goods or supply of services;
- e) interest or late fee or penalty for delayed payment of any consideration for any supply; and
- f) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments.
- mentioned in the agreement entered into at or before the supply and
- specifically linked to relevant invoices; and
- input tax credit related to discount reversed by the recipient.
Value when Consideration not wholly in money
- i. Consideration in money; and
- ii. Equivalent amount of money for the consideration not in money, if available at the time of supply
- i. Consideration in money; and
- ii. Equivalent amount of money for the consideration not in money, as determined by rule 4 or 5 in that order.
Value of Goods/ Services – transaction between related / distinct persons other than agent
Rule 2: Value of Supply of Goods or services or both between distinct or related persons, other than an agent, shall- a) be the open market value of such supply;
- b) If open market value is not available; be the value of such goods or supply of like kind or quality;
- c) If value is not determinable as per above (a) or (b) above , be the value as determined by rule 4 or 5 in that order.
Value of Goods – made or received through an agent
Rule 3: Value of Supply of Goods between the principal or agent, shallValue of Goods/ Services – based on cost
Rule 4: Value of Supply of Goods or services or both based on cost- Where the value is not determinable by any of the preceding rules,
- the value shall be 110% of the cost of production/ manufacture /acquisition of such goods/ provision of such services.
Value of Goods/ Services – Residual Method
- Where the value is not determinable under rules 1 to 4,
- the same shall be determined using reasonable means consistent with the principles and general provisions of section 15 and these rules:
Valuation of Specific supplies – Money changing
- Currency when exchanged from or /to INR – value shall be equal to difference in the buying /selling rate as compared to RBI reference rate
- In case RBI reference rate not available – 1% of INR received or paid,
- In case none of the currency involved is INR, - 1% of lesser of the two amounts received by person converting any of the two currencies into INR
- 1 % of the gross amount of currency exchanged for an amount upto Rs. 1 lacs, subject to minimum of Rs. 250/-
- Rs. 250/- + 0.5 % of the gross amount of currency exchanged for an amount exceeding Rs. 1 lacs and upto Rs 10 Lacs
- Rs. 5,000/- + 0.10 % of the gross amount of currency exchanged for an amount exceeding Rs. 10 lacs rupees, subject to maximum of Rs. 60,000/-
Valuation of Specific supplies – Air Travel Agent
- Domestic Travel booking - 5% of the basic fare
- International Travel booking – 10 % of the basic fare
Valuation of Specific supplies – Life Insurance Business
- Gross premium charged less the amount allocated for investment or savings, if such amount is intimated to the policy holder.
- In case of single premium annuity policies other than the above – 10 % of the single premium In all other cases –
- 25% of the premium charged in the first year
- 12.5% of the premium charged in the subsequent years
- where taxable supply is provided by a person
- dealing in buying and selling of second hand goods, (used goods as such or minor processing which does not change the nature)
- No input tax credit has been availed on purchases of such goods
- value shall be –
- the difference between the selling price and purchase price and
- If the value is negative, it shall be ignored
Valuation of supply of Services – In case of Pure Agent
Rule 7: Notwithstanding anything contained in these rules, the expenditure or costs incurred by the supplier as a pure agent of the recipient of supply of services shall be excluded from the value of supply, if all the following conditions are satisfied, namely:-- a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both;
- b) neither intends to hold nor holds any title to the goods or services or both so procured or provided as pure agent of the recipient of supply;
- c) does not use for his own interest such goods or services so procured; and
- d) receives only the actual amount incurred to procure such goods or services
Valuation of supply of Services – In case of Pure Agent
- i. the supplier acts as a pure agent of the recipient of the supply, when he makes payment to the third party for the services procured as the contract for supply made by third party is between third party and the recipient of supply;
- ii. the recipient of supply uses the services so procured by the supplier service provider in his capacity as pure agent of the recipient of supply;
- iii. the recipient of supply is liable to make payment to the third party;
- iv. the recipient of supply authorises the supplier to make payment on his behalf; v. the recipient of supply knows that the services for which payment has been made by the supplier shall be provided by the third party;
- vi. the payment made by the supplier on behalf of the recipient of supply has been separately indicated in the invoice issued by the supplier to the recipient of service;
- vii. the supplier recovers from the recipient of supply only such amount as has been paid by him to the third party; and viii. the services procured by the supplier from the third party as a pure agent of the recipient of supply are in addition to the supply he provides on his own account.