Page 16 - Chapter 2.cdr

The value of supply by Mr. Viraj to Mr. Tushar will be as follows:- 14. Para 4- import of services without consideration
Particulars ` CCP 02.14.35.00
CH 2 Open market value of goods supplied to agent (As per rule 29) 5,10,000 Discuss the taxability of import of services under GST. (RTP – ICAI)

Add:- GST @ 12% 61,200 Answer : As per section 7(1)(b) of CGST Act, 2017 supply includes the importation
Charge of Tax & Concept of Supply
Total 5,71,200 of services for a consideration whether or not in the course or furtherance of
Note – As per rule 29, value shall be open market value or 90% of price charge for business. Thus, import of services with consideration is taxable in both of the
supply of goods of like kind and quality by agent to his customer not being related. following situations:
Ø Open market value is 5,10,000 Ø in course or furtherance of business
Ø Calculation of 90% of price charge - Ø not in course or furtherance of business

Value of goods 5,10,000 Further, Schedule I of CGST Act, inter alia, stipulates that import of services by a
Commission 61,200 person from a related person or from his establishments located outside India is
Interest 13,393 treated as “supply” even if made without consideration if it is provided in the course

Total 5,84,593 or furtherance of business.
90% of price charge 5,26,134
CCP 02.14.36.00
Therefore, Open market value is beneficial to the assessee
Mr. Sagar import interior design service for designing his office from his brother
The value of supply by Mr. Tushar to Mr. Somesh will be as follows:-
Particulars ` Mr. Raj who resides in UK from last 1 year whether it is treated as supply under
GST law?
Price of goods 5,00,000
Add:- Commission @ 12% on above 60,000 Answer: Legal Provision: As per the provision of para 4 schedule -1 of CGST act
Add:- Interest for delayed payment (15000*100/112) 13,393 import of any service without consideration by a person from a related person outside

Total Value 5,73,393 India or from any of his other establishments outside India in the course or
Add:- GST @ 12% 68,807 furtherance of business is treated as supply.
Less:- ITC on inward supply (61,200) Person are treated as related party if they are members of same family.
Net GST Payable 7,607 As per section 2 (49) family means, i. the Spouse and children of the person
Note:- i) The value of the interest charged by Mr. Tushar to Mr. Somesh will be and, ii. the Parents, Grandparents , Brothers and Sisters of the person if they are
included in the value of supply of goods as per sec 15(2)(d) of the CGST Act. wholly or mainly dependent on the said person.
ii) Interest is inclusive of GST (detailed discussion under Valuation Chapter) Conclusion: Since the question doesn't specifically mentioned that brother is

iii) When agent issues his own invoice the commission charged by DSA is recovered dependent, & he resides in UK from last one year (on his own), so brother is not
from customer and hence added in the price charged by DSA to customer dependent therefore he will not be considered as related party.
Note- Rule 29 is applicable for All Agents (Issuing his own invoice or suppliers Invoice.) Therefore in the given case referring to the above provision Importation of
service by Mr. Sagar for designing his office from his brother Mr. Raj without
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