Section 15 CGST Act 2017 prescribes the VALUE of SUPPLY for tax purposes as:
Answer & Solution
Correct answer: B.
1. Section 15(1) CGST Act 2017: the VALUE of a SUPPLY of goods or services or both shall be the TRANSACTION VALUE — the PRICE ACTUALLY PAID OR PAYABLE for the supply where:
2. (i) supplier and recipient are NOT RELATED;
3. (ii) PRICE is the SOLE CONSIDERATION for the supply.
4. Section 15(2) — value INCLUDES:
5. (a) Any taxes/duties levied under any law (other than GST);
6. (b) Amount paid by recipient on behalf of supplier (not included in price);
7. (c) INCIDENTAL EXPENSES — commission, packing, anything charged by supplier;
8. (d) INTEREST/FEE for delayed payment;
9. (e) SUBSIDIES linked to price (other than CG/SG subsidies).
10. Section 15(3) — value EXCLUDES:
11. (a) DISCOUNTS recorded in invoice;
12. (b) DISCOUNTS after supply if pre-agreed.
13. Section 15(4): when transaction value not determinable, value as per CGST Rules.
14. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — CGST Act 2017, Section 15_
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