Page 14 - Ch5_Value of Supply

20,000 As per section 15(2)(b) of CGST Act, it shall be added in value
as it is supplier's liability being incurred by recipient and not

included in price also.

Add: Installation and 25,000 As per section 15(2)(c) of CGST Act, any amount charged for
testing charges anything done by supplier for supply of goods at the time of, or
before delivery of goods shall be included in value.

Less: Discount 2% on (11,000) As per section 15(3)(a) of CGST Act, since discount is given
machinery price before or at the time of supply of machinery & recorded in

[`5,50,000 x 2%] invoice, this discount shall be deducted from value.
Less: Additional 1% Nil
discount at year end

Value of taxable supply 5,84,000

CCP 05.04.19.00

Namo Shankar Ltd., a registered supplier in Mumbai (Maharashtra), has supplied goods to Narad
Traders and Nandi Motors Ltd. located in Ahmedabad (Gujarat) and Pune (Maharashtra) respectively.
Namo Shankar Ltd. has furnished the following details for the current month:-

Sr. No. Particulars Narad Traders (`) Nandi Motors Ltd. (`)
(i) Price of the goods (excluding GST) 10,000 30,000

(ii) Packing charges 500
(iii) Commission 500
(iv) Weighment charges 2,000

(v) Discount for prompt payment (recorded in the invoice) 1,000
Items given in points (ii) to (v) have not been considered while arriving at price of the goods given in
point (I) above.
Compute the GST liability [CGST & SGST or IGST, as the case may be] of Namo Shankar Ltd. for the
given month. Assume the rates of taxes to be as under:-

Particulars Rate of tax
Central tax (CGST) 9%
State Tax (SGST) 9%

Integrated tax (IGST) 18%
Make suitable assumptions, wherever necessary.
Note:- The supply made to Narad Traders is an inter-State supply. [CA Inter RTP-Nov 21]
Answer:-
Computation of GST liability:-

Sr. No. Particulars Narad Traders (`) Nandi Motors Ltd. (`)
(i) Price of goods 10,000 30,000

(ii) Add: Packing charges (Note-1) 500

(iii) Add: Commission (Note-1) 500

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