Page 13 - Ch5_Value of Supply

Note: Price of the goods is net of the subsidy received.
Determine the value of taxable supply made by Shri Krishna Pvt. Ltd. to Shri Balram Pvt. Ltd.

[Study Mat] [CA Inter MTP Oct 20, Nov 21, Sep 23]
Answer:-
Computation of value of taxable supply made by Shri Krishna Pvt. Ltd. to Shri Balram Pvt. Ltd.:-

Particulars Amount (`) Remark
Price of the goods 1,00,000
Municipal Tax 2,000 Taxes other than those levied under GST law are Includible in
value as per section 15(2)(a) of CGST Act, 2017
Inspection charges 15,000 Being incidental expenses, the same are includible in the value

as persection 15(2)(c) of the CGST Act, 2017
Subsidy received from 50,000 Since subsidy is received from a non-Government body, and
Shri Ram Trust subsidy is directly linked to price the same is includible in the
value as per section 15(2)(e) of the CGST Act, 2017
Late fees for delayed Nil Not includible u/s 15(2)(d) of CGST Act, 2017 since it is waived

payment off
Weighment charges 2,000 Liability of the supplier being discharged by the recipient & not

paid to Radhe Pvt. Ltd. included in price, is includible in the value as per section
by Shri Balram Pvt. Ltd. 15(2)(b) of the CGST Act
on behalf of Shri
Krishna Pvt. Ltd.
Value of taxable supply 1,69,000

CCP 05.04.18.00
Koli Ltd., a registered supplier, has supplied machinery to Ghisa Ltd. (a supplier registered in the same
State). It provides following particulars regarding the same:-

Particulars Amount in ₹
Price of Machinery (exclusive of taxes and discounts) 5,50,000

20,000

Installation and testing charges for machinery, not included in price 25,000
Discount 2% on price of machinery mentioned at S. No. (I) above (recorded in invoice)

Particulars Amount (`) Remark
Price of machinery 5,50,000
(exclusive of taxes &

discounts)

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 75