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

Which statement about Section 15 of the CGST Act, 2017 is correct?

Where the value cannot be determined under Section 15(1), for example because the parties are related, it is determined in the prescribed manner under Section 15(4). Sole agents or distributors are deemed related, and government subsidies are excluded.

  1. AWhere value cannot be determined under sub-section (1), it is determined in the manner prescribedCorrect
  2. BA sole distributor and the principal are never treated as related
  3. CSubsidies given by the Central Government are always included in value
  4. DA post-supply discount is excluded without any condition if the parties agree orally

Explanation

Section 15(4) provides that where value cannot be determined under sub-section (1), it is determined as prescribed. Sole agent, distributor or concessionaire are deemed related under clause (c). Central and State Government subsidies are excluded, and post-supply discount needs an agreement at or before supply linked to invoices plus ITC reversal.

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