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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Value of Supply

Mehta Packaging sells goods to an unrelated buyer at Rs 80,000. It also charges Rs 3,000 for packing and Rs 2,000 commission, both on the invoice, and Rs 1,500 as interest for delayed payment received later. What is the value of supply including all items under Section 15(2)?

The value is Rs 86,500. Packing and commission are incidental expenses included under Section 15(2)(c), and interest for delayed payment is included under 15(2)(d), so 80,000 plus 3,000, 2,000 and 1,500 gives 86,500.

  1. ARs 80,000
  2. BRs 85,000
  3. CRs 86,500Correct
  4. DRs 83,000

Explanation

Section 15(2)(c) includes incidental expenses such as commission and packing, and 15(2)(d) includes interest for delayed payment. Value = 80,000 + 3,000 + 2,000 + 1,500 = 86,500. Rs 85,000 omits the interest.

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