CS Executive · Tax Laws and Practice · Time, Value and Place of Supply
Rohan Foods supplies goods under an invoice showing price Rs 80,000 and a trade discount of Rs 5,000 duly recorded in that same invoice. It also charges separately Rs 3,000 as interest for the buyer's delayed payment of this invoice. What is the value of supply including the interest, ignoring GST?
The value is Rs 78,000. The Rs 5,000 discount recorded in the invoice is excluded, leaving Rs 75,000, and the Rs 3,000 interest for delayed payment is added under section 15(2)(d). Both rules together give Rs 78,000.
- ARs 75,000
- BRs 78,000Correct
- CRs 80,000
- DRs 83,000
Explanation
A discount given at the time of supply and recorded in the invoice is excluded under section 15(3)(a), so base value is 80,000 - 5,000 = 75,000. Interest for delayed payment is included under section 15(2)(d), adding 3,000, giving Rs 78,000. Rs 83,000 ignores the discount.
Did you get it right without looking?
One question tells you little. A timed set on Time, Value and Place of Supply shows your real accuracy, how long you take and where you lose marks.
More Time, Value and Place of Supply questions
- Services were supplied by Mehra Consultants on 5 May, after a rate change effective 1 May. The invoice was issued on 25 April and payment wa…
- Under the IGST place of supply rules for services, Pinnacle Software Pvt Ltd, Pune, provides consulting services to Kavya Traders, a GST-reg…
- A manufacturer sells goods to a customer for Rs 1,00,000. Under a prior agreement linked to specific invoices, it later gives a Rs 5,000 dis…
- Under section 13(4) of the CGST Act, 2017, a supplier issues a gift voucher that can be used only for one specified service at a fixed price…
- Kiran Traders receives a service on reverse charge from a supplier who must issue an invoice. The supplier's invoice is dated 1 March, and t…
- The rate of GST changed on 1 April. Goods were supplied before 1 April. The invoice was issued after 1 April and the payment was also receiv…