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Value of supply inclusive of GST (Rule 35 of CGST Rules) - GST Ready Reckoner - GSTExtract Value of supply inclusive of GST (Rule 35 of CGST Rules) Where the value of supply is inclusive of integrated tax or, as the case may be, central tax, State tax, Union territory tax, the tax amount shall be determined in the following manner, namely,- Tax amount = (Value inclusive of taxes X tax rate in % of IGST or, as the case may be, CGST, SGST or UTGST) (100+ sum of tax rates, as applicable, in %) When the product is sold at MRP(inclusive of tax), tax amount to be indicated on invoice shall be calculated in the above said manner. The cash discount recovered and interest respectively are inclusive of tax. Thus, tax payable thereon has to be computed by making back calculations in terms of rule 35 . Explanation. - For the purposes of the provisions of this Chapter, the expressions- (a) open market value of a supply of goods or services or both means the full value in money, excluding the integrated tax, central tax, State tax, Union territory tax and the cess payable by a person in a transaction, where the supplier and the recipient of the supply are not related and the price is the sole consideration, to obtain such supply at the same time when the supply being valued is made; (b) supply of goods or services or both of like kind and quality means any other supply of goods or services or both made under similar circumstances that, in respect of the characteristics, quality, quantity, functional components, materials, and the reputation of the goods or services or both first mentioned, is the same as, or closely or substantially resembles, that supply of goods or services or both. Example :- I f the value inclusive of tax is ₹ 1 0 0 / - a nd applicable GST rate is 18% [IGST or CGST, SGST/UTGST] then, Ta x amount = (100x18)/(100+18) = ₹ 1 5 .2 5
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