TMI BlogValuation in GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... half 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. Exclusion of discounts Discounts like trade discount, quantity discount etc. are part of the normal trade and commerce, therefore pre-supply discounts i.e. discounts recorded in the invoice have been allowed to be excluded while determining the taxable value. Discounts provided after the supply can also be excluded while determining the taxable value provided two conditions are met, namely (a) discount is established in terms of a pre supply agreement between the supplier the recipient and such discount is linked to relevant invoices and (b) input tax credit attributable to the discounts is reversed by the recipient. Taxable value when consideration is not solely in money In some cases, where consideration for a supply is not solely in money, taxable value has to be determined as prescribed in the rules. In such cases following values have to be taken sequentially ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Judgement method) However if the recipient is eligible for full input tax credit, the invoice value will be deemed to be the open market value. It has also been provided that where the goods being supplied are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to 90% of the price charged for the supply of goods of like kind and quality by the recipient to his unrelated customer. Value of supply of goods made or received through an agent a) Open market value of goods being supplied, or, at the option of the supplier, 90% of the price charged for the supply of goods of like kind and quality by the recipient to his unrelated customer. Illustration : Where a principal supplies groundnut to his agent and the agent is supplying groundnuts of like kind and quality in subsequent supplies at a price of ₹ 5000/- per quintal on the day of supply. Another independent supplier is supplying groundnuts of like kind and quality to the said agent at the price of ₹ 4550/- per quintal. The value of the supply made by the principal shall be ₹ 4550/- per quintal or where he exercises the opti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rupees provided/received by the person changing the money. Case 2: Transaction where neither of the currencies exchanged is Indian Rupees Taxable value will be 1% of the lesser of the two amounts the person changing the money would have received by converting (at RBI reference rate) any of the two currencies in Indian Rupees. Option-2 The person supplying the service may also exercise the following option to ascertain the taxable value, however once opted then he cannot withdraw the during the remaining part of the financial year: - One percent of the gross amount of currency exchanged for an amount up to one lakh rupees, subject to minimum amount of two hundred and fifty rupees. One thousand rupees and half of a percent of the gross amount of currency exchanged for an amount exceeding one lakh rupees and up to ten lakh rupees. Five thousand rupees and one tenth of a percent of the gross amount of currency exchanged for an amount exceeding ten lakhs rupees subject to a maximum amount of sixty thousand rupees. Special provision related to determination of value of service of booking of tickets for air travel by an air travel agent Taxable value is 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making such repossession. However, if the defaulting borrower is registered, the repossessing lender agency will discharge GST at the supply value without any reduction from actual/notional purchase value. Special provisions related to determination of value of redeemable vouchers/stamps/coupons/tokens The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is redeemable against a supply of goods or services or both shall be equal to the money value of the goods or services or both redeemable against such token, voucher, coupon, or stamp. Value of taxable services provided by a notified class of service providers as referred to in para 2 of schedule 1 between the distinct persons The taxable value is deemed to be Nil wherever input tax credit is available. Valuation of certain works contract services (i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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