Skip to content

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

Tara Fabrics Ltd. sells garments to an unrelated buyer for ₹50,000 and separately charges ₹2,000 as packing charges on the same invoice, before delivery. Ignoring GST itself, what is the value of supply under Section 15?

The value is ₹52,000. Under Section 15(2)(c), incidental expenses such as packing charged by the supplier to the recipient at or before delivery are included in the value of supply, so the ₹2,000 packing charge is added to the ₹50,000 price.

  1. A₹50,000, because packing is a separate service
  2. B₹52,000, because incidental expenses charged by the supplier form part of valueCorrect
  3. C₹48,000, because packing cost is deducted from the price
  4. D₹51,000, because only half of packing charges is includible

Explanation

Section 15(2)(c) includes incidental expenses, including commission and packing, charged by the supplier to the recipient. Value = 50,000 + 2,000 = ₹52,000. Excluding packing (₹50,000) ignores this inclusion rule.

Did you get it right without looking?

One question tells you little. A timed set on Supply under GST shows your real accuracy, how long you take and where you lose marks.

Practise Supply under GSTFree diagnostic mock

More Supply under GST questions