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Valuation of Cross Charge, Goods and Services Tax - GST

Issue Id: - 118161
Dated: 16-9-2022
By:- THDC India
Valuation of Cross Charge

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Dear Expert,

Kindly share your valuable opinion on following matter:

While cross charge, whether GST component should be reduced from the taxable value due to provision of section 15(2)(a) and thereafter GST should be levied on value obtained after reducing GST component.

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Posts / Replies

Showing Replies 1 to 6 of 6 Records

1 Dated: 17-9-2022

No such deduction is allowed.For valuation purpose, also see Section 15(4) read with Section 25(4) of CGST Act and Rule 28 of CGST Rules,2017

2 Dated: 18-9-2022
By:- Shilpi Jain

In case the recipient (distinct / related person) is eligible for full credit, any value can be adopted.

3 Dated: 18-9-2022


Pl. throw light on the words, 'any value' for enrichment of my knowledge.

Thanks a lot.

4 Dated: 19-9-2022

Dear Querist,

For more details, go through this article/web-link

5 Dated: 19-9-2022
By:- THDC India

Dear Sir,

By not reducing the GST component during Cross Charge, wouldn't it violate fundamental of GST i.e. cascading effect of tax. In other words, GST would be charged again on GST component.

For the clarification, Recipient is also not eligible to avail ITC.

6 Dated: 21-9-2022
By:- Ganeshan Kalyani

Proviso to rule 28 states as, "Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services." In view of this proviso you may change taxable value without GST if the receiving person is able to take credit.


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