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

Under Section 15 of the CGST Act, 2017, which statement about the transaction value of a supply is correct?

Transaction value applies only where the supplier and recipient are not related and the price is the sole consideration for the supply. If either condition fails, the value is determined in the manner prescribed under Section 15(4). It covers goods, services or both.

  1. AIt applies to all supplies, whether or not the supplier and recipient are related
  2. BIt applies only where the supplier and recipient are not related and the price is the sole considerationCorrect
  3. CIt applies whenever the price is paid in money, even between related persons
  4. DIt applies only to supplies of goods, not services

Explanation

Section 15(1) makes the transaction value the value of supply only where the parties are not related and the price is the sole consideration. Otherwise the value is determined in the prescribed manner under s.15(4). It covers goods, services or both.

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