CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Value of Supply
Kaveri Industries supplies machinery at a price of Rs 2,00,000 and separately charges Rs 12,000 as customs duty-type levy under a law other than the GST laws, plus Rs 36,000 as CGST and SGST together. What is the value of supply for GST?
The value of supply is Rs 2,12,000. Section 15(2)(a) adds separately charged taxes and duties levied under laws other than the GST enactments, so the Rs 12,000 levy is included, while the CGST and SGST of Rs 36,000 are excluded from value.
- ARs 2,00,000
- BRs 2,12,000Correct
- CRs 2,36,000
- DRs 2,48,000
Explanation
Section 15(2)(a) includes taxes and duties under other laws if charged separately, but excludes GST laws. Value = 2,00,000 + 12,000 = Rs 2,12,000. Adding the Rs 36,000 of CGST and SGST is wrong because those are excluded.
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