Page 9 - Ch5_Value of Supply

03 . Explanation to section 15:- Related Persons

CCP 05.03.12.00

04.Combined Questions on section 15:-

CCP 05.04.13.00
Determine the value of taxable supply from the following information in accordance with the
provisions of section 15 of the CGST Act 2017:-

Particulars Amount in ₹
Contract Value of goods inclusive of GST @ 12% 9,50,000
The above value of goods includes the following charges:-
- Packing & Handling charges 15,000
- Assembling & Pattern making charges 22,000

- Testing charges 11,000
Transport charges paid by recipient on behalf of supplierhas not been included in the 7,500
contract value
Answer:
Computation of Value of Taxable supply:-

Particulars ₹ Remark

Total Contract price 9,50,000 It is inclusive of GST, Packing & Handling charges, Assembling & Pattern
of goods making charges & Testing charges as given in Question.

Less:- GST @ 12% (1,01,786) It is not includible in value u/s 15(2)(a) of CGST Act, 2017.
[Rs.9,50,000 *12/112]
Add:- Transport 7,500 Supplier's liability being incurred by recipient and not included in price,
charges is includible in value u/s 15(2)(b) of CGST Act, 2017.
Value of taxable Supply 8,55,714 Refer Note below

Notes:-
Ü As per section 15(2)(c) of the CGST Act, value of supply shall include
Ø incidental expenses, including commission and packing, charged by supplier to recipient &

Ø any amount charged for anything done by the supplier in respect of the supply until delivery of goods
or supply of services.
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