Page 17 - Ch5_Value of Supply

CCP 05.04.21.00
XYZ Pvt. Ltd. provided the following particulars relating to goods sold by it to ABC Pvt. Ltd.:

Particulars Amount (`)
List price of the goods (exclusive of taxes and discount) 50,000

Tax levied by the Municipal Authority on the sale of such goods 6,000
Packing charges (not included in the list price above) 2,500

Subsidy received from a NGO, directly linked to price (included in 3,000
the list price above)
Paid to one of the vendors by ABC Pvt.in relation to the service ] 2,000
provided by the vendor to XYZ Pvt. Ltd. (not included in the list
price above)

XYZ Pvt. Ltd. offers 2% turnover discount on the list price after reviewing the performance of ABC Pvt.
Ltd. The discount was not known at the time of supply.
ABC Pvt. Ltd. delayed the payment and paid ₹ 5,000 (including GST of 18%) as interest to XYZ Pvt. Ltd.

Determine the value of taxable supply made by XYZ Pvt. Ltd. under GST law.
(CA Inter May 22 Exam) [Study Mat (Similar)]
Answer:
Computation of value of taxable supply made by XYZ Pvt. Ltd:

Particulars Amount(`) Remark
List price of the goods 50,000 -
(exclusive of taxes and

discount)
Tax levied by Municipal 6,000 As per section 15(2)(a) of CGST Act, Tax other than GST are
Authority on the sale of includible in value, if charged separately.
such goods
Packing charges 2,500 As per section 15(2)(c) of the CGST Act, the value of supply

shall include incidental expenses, including commission and
packing charges, charged by supplier to recipient
Subsidy received from - As per section 15(2)(e) of the CGST Act, subsidy is received

NGO from a non-Govt. body and directly linked to the price, the same
is includible in the value of supply

Payment made by ABC 2,000 As per section 15(2)(b) of the CGST Act, Amount that supplier
Pvt. Ltd. in relation to is liable to pay, but incurred by the recipient, is includible in the
service provided by value of supply

vendor to XYZ Pvt Ltd
Turnover discount - As per section 15(3), Since discount is not known at the time of
supply, it is not deductible from the value of supply
Interest for delayed 4237 As per section 15(2)(d) of CGST Act, the value of supply shall

payment (rounded off) (5000* include Interest or late fee or penalty for delayed payment of any
100/118) consideration for supply.
Value of taxable supply 64,737

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 79