Page 12 - Ch5_Value of Supply

Sr.No. Particulars Amount (`)
List price (exclusive of taxes and discount) 9,50,000
(i) Municipal taxes [Note-1] 45,000

(ii) Outward freight charges [Note-2] 65,000
Value of taxable supply 10,60,000
Notes:-
1. As per section 15(2)(a) of CGST Act, Tax other than GST are includible in the value, if charged

separately,.
2. Since contract is to deliver machine at buyer’s factory, it is a composite supply wherein the freight
charges will be added to the value of principal supply of machine & it is includible as per section
15(2)(c).

3. As per section 15(2)(d), Value of supply includes interest charged for delayed payment. However,
since the interest on delayed payment has been waived off, the same has not been added to the value.
4. As per section 15(2)(e), Subsidy directly linked to the price provided by non-Government bodies is
includible in value. Since subsidy received from NGO is not directly linked to the price of the machine,
the same has not been added to the value.

5. Since the discount was not known or agreed to at the time of supply of goods to the buyers, such discount
cannot be reduced from the price, as per section 15(3).
6. TCS is not includible in the value of supply as it is an interim levy not having the character of tax.

CCP 05.04.17.00
Shri Krishna Pvt. Ltd., a registered supplier, furnishes the following information relating to goods sold
by it to Shri Balram Pvt. Ltd:

Sr. No. Particulars Amount (₹)
(i ) Price of the goods [excluding taxes and other charges mentioned at S. Nos. 1,00,000
(iii), (v) and (vi)]
(ii) Municipal tax 2,000

(iii) Inspection charges 15,000
(iv) Subsidy received from Shri Ram Trust [Subsidy is directly linked to the goods 50,000
supplied]
(v) Late fees for delayed payment inclusive of GST [Shri Balram Pvt. Ltd. paid the 1,000

late fees. However, these charges were ultimately waived by Shri Krishna Pvt.
Ltd. and the amount was refunded to Shri Balram Pvt. Ltd. during the same
month]
(vi) Weighment charges[Such charges were paid by Shri Balram Pvt. Ltd. to Radhe 2,000

Pvt. Ltd. on behalf of Shri Krishna Pvt. Ltd.]

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