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THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
TIME AND VALUE OF SUPPLY
Section 15: Value of taxable supply. (Relevant Rules 27 to 35) (Relevant Updates)
(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.
(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 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.
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