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Consideration - GST Ready Reckoner - GSTExtract As per section 2(31) of CGST Act Consideration in relation to the supply of goods or services or both includes (a) 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 by the Central Government or a State Government; (b) the monetary value of any act or forbearance, 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 by the Central Government or a State Government : (c) a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply. Relevant case laws No GST on interest free refundable deposit received. [ E-SQUARE LEISURE PVT. LTD. AAR, MAHARASHTRA ] GST on notional interest on interest free refundable deposit not includible. [ M/S. MIDCON POLYMERS PVT. LTD. AAR, KARNATAKA ] Example: - 1. The best example of consideration not entirely in the form of money is seen in the exchange offer in the retail trade of consumer durable: - when we go to buy a new mobile phone, we are offered two bargains. Firstly , we can pay money and take mobile phone home. Secondly , we may exchange our old mobile phone and pay lesser money to the extent of value determined for old mobile phone. Here money equivalent value of old mobile phone agreed between supplier and recipient will also be a part of consideration of new mobile phone on which GST will be charged by Supplier.
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