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2023 (9) TMI 854 - APPELLATE AUTHORITY FOR ADVANCE RULING, UTTAR PRADESHValuation - inclusion of value of material and cost of execution of work for installation of lines will be included in the value of supply for determination of taxable value under GST where all such cost are taken as reimbursement or not - value of material and cost of execution of work for installation of lines will be included in the value of supply for determination of taxable value under GST where all such cost are borne by the recipient of service and only supervision fee charged by applicant? HELD THAT:- The supply has been defined under Section 7 of CGST Act, 2017 which includes “all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease, or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business”. Further as per definition provided under Section 2(31) of GST Act, 2017, Consideration, means any payment made or to be made, whether in money or otherwise in respect of, in response to or for the inducement of the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given the Central Government or a State Government. The Authority for Advance Ruling is correct in holding that value of material and cost of execution of work for installation of lines will be included in the value of supply for determination of taxable value under GST where all such cost are taken as reimbursement. Entire cost is borne by the recipient of service - HELD THAT:- The Authority for Advance Ruling has held that the value of taxable supply shall not include the material cost and the appellant shall be liable to pay GST on supervision charge only to avoid double taxation subject to the condition that tire contractor/recipient of service should have GST invoice which should be submitted after completion of project - it is found that that there is no such provision stipulated under GST Act and this condition is unwarranted and having no legal backing as argued by the appellant. Thus, where the value of materials and cost of execution of work for installation of electric lines are borne by the recipient of service and the appellant charges supervision fee only, the value of materials and cost of installation shall not be included in the value of supply for determination of taxable value under GST and the appellant shall be liable to pay GST only on the supervision charges.
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