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2022 (8) TMI 1241 - AAR - GSTValuation - transaction value - inclusion of cost / expenditure / supply received on which GST has been paid - Double charging of GST or not - contract involving supply of equipment/ machinery & erection, installation & commissioning services with civil work is correct as per the present GST regime or not - Section 15 of the Central Goods and Services Tax Act, 2017 - HELD THAT:- Section 15 of the Central Goods and Services Tax Act, 2017 provides common provisions for determining the value of goods and services. It provides the mechanism for determining the value of a supply which is made between unrelated persons and when price and only the price is the sole consideration of the supply. In the C.B.E. & C. Flyer No. 29, dated 1-1-2018 it has been clarified that “Compulsory Inclusions- Any taxes, fees, charges levied under any law other than GST law, expenses incurred by the recipient on behalf of the supplier, incidental expenses like commission & packing incurred by the supplier, interest or late fees or penalty for delayed payment and direct subsidies (except government subsidies) are required to be added to the price (if not already added) to arrive at the taxable value”. It is observed that M/s UPCL & M/s PITCUL are correctly including all the components of the cost incurred by them for arriving at the pricing of goods. Furthermore, inclusion of other components namely Contingency Charges, 0/H & Supervision Charges, Labor Cess on Centralised Mat., etc. by M/s UPCL & M/s PITCUL, appears to be in terms of the agreement entered between the applicant and the said two entities. And in view of the provisions of Section 15 of the CGST Act, 2017, M/s UPCL & M/s PITCUL are correctly adding up all the other agreed upon components, to arrive at the transaction value for the purpose of payment of GST - the component of the GST paid by M/s UPCL & M/s PITCUL on the supplies received by them from their vendors, is the cost for them and is one of the many components which constitutes the transaction value for the supply in question and is the price actually payable (transaction value) for the said supply of work contract to the applicant. Therefore, the transaction value arrived by M/s UPCL & M/s PITCUL is in consonance with the provisions of the GST Act, 2017 and the GST is payable on transaction value so arrived.
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