Calculating the taxable value has always been the crucial and most important step in arriving at the tax liability. As a tax payer, you must have questions such as:
Section 15 (1) of CGST ACT, 2017 provides that value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.
Tax should be paid on transaction value if:
If above both conditions are not satisfied, than taxable value or value of supply should be calculated as per Valuation Rules notified by Government.
Section 15(2) provides that value of supply shall include:
In short, this section provides that following other charges should be added to transaction value:
It is clear that any expense incurred to make delivery or supply of goods or services is liable to tax.
As per section 15(3), value of supply shall not include any discount which is given:
An example of valuation:
|Particulars||Amount ( In Rs. )|
|Value of Goods or services||1,00,000|
|Loading and Unloading charges||15,000|
|Less: Trade Discount||-2,000|
total taxable value will be include of GST or exclude GST.
In GSTR 1 What HSN/ SAC Code we have to show for freight charged in bill?
i have a query
i am a registered seller from up. i sell material worth 1 lakh to an unregistered dealer in maharashta.
transportation cost is extra.
the dealer in Maharashtra tells me to pay freight to the tranporter (suppose 5,000), which he will deposit separately in my account.
now what would be the sale consideration / invoice vale whether 1,00,000 or 1,05,000/-
and do i have to pay 5 % of 5,000/- which is the transportation charge.
The value for charging GST will be invoice value + transportation charges.
Sir, I am a fmcg stockist of two national companies. For both of these companies behalf we pay fixed monthly Display money to retail traders both registered and unregistered and then raise debit notes to company for reimbursement. For registered retailers both says pay tem with gst and raise the B2B service invoice to them. But for unregistered retailers one asks us to pay the RCM and the other says don't pay the co. will pay the RCM and claim input in next cycle. Which treatment is right.
if i have an amout value i.e 5000 inluded all cgst (2.5%) and sgst(2.5%) charges.how to find taxeble value for this amount.if there is any formla..plese tell me
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