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

Under Section 15(1) of the CGST Act, 2017, the transaction value is accepted as the value of supply where the supplier and recipient are not related and:

Transaction value applies when the supplier and recipient are not related and the price is the sole consideration for the supply. Registration of the recipient, cost of production or the State of supply is not a condition under Section 15(1).

  1. Athe price is the sole consideration for the supplyCorrect
  2. Bthe price is at least equal to the cost of production
  3. Cthe recipient is registered under GST
  4. Dthe supply is made within the same State

Explanation

Section 15(1) accepts the price actually paid or payable as value only if the parties are not related and the price is the sole consideration. Cost, registration status or location of supply are not conditions for transaction value.

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