Section 15 of CGST Act Value of taxable supply

CHAPTER IV

Chapter IV of the CGST Act,2017 covers four sections relating toTIME AND VALUE OF SUPPLY.The GST law has provided separate provisionsto determine the time of supply of goods and time of supply ofservices. Section 12, 13 & 14 of the Central GST Act, 2017 (CGSTAct) deals with the provisions related to time of supply and byvirtue of Section 20 of the Integrated GST Act, 2017 (IGST Act)these provisions are also applicable for the IGST Act.Section 15 of CGST Act Value of taxable supply
Section 12Time of supply of goods
Section 13Time of supplyof services
Section 14Change inrate of tax inrespect ofsupply ofgoods orservices
Section 15 Value oftaxablesupply

Section 15 of CGST Act Value of taxable supply

(1) The value of a supply of goods or services or both shall be the transactionvalue, which is the price actually paid or payable for the said supply of goods or services orboth where the supplier and the recipient of the supply are not related and the price is thesole consideration for the supply.
(2) The value of supply shall include

(a) any taxes, duties, cesses, fees and charges levied under any law for the timebeing in force other than this Act, the State Goods and Services Tax Act, the UnionTerritory Goods and Services Tax Act and the Goods and Services Tax (Compensationto States) Act, if charged separately by the supplier;

(b) any amount that the supplier is liable to pay in relation to such supply butwhich has been incurred by the recipient of the supply and not included in the priceactually paid or payable for the goods or services or both;

(c) incidental expenses, including commission and packing, charged by thesupplier to the recipient of a supply and any amount charged for anything done by thesupplier in respect of the supply of goods or services or both at the time of, or beforedelivery of goods or supply of services;

(d) interest or late fee or penalty for delayed payment of any consideration forany supply; and

(e) subsidies directly linked to the price excluding subsidies provided by theCentral Government and State Governments.

Explanation.For the purposes of this sub-section, the amount of subsidyshall be included in the value of supply of the supplier who receives the subsidy.
(3) The value of the supply shall not include any discount which is given

(a) before or at the time of the supply if such discount has been duly recorded inthe invoice issued in respect of such supply; and

(b) after the supply has been effected, if

(i) such discount is established in terms of an agreement entered into at orbefore the time of such supply and specifically linked to relevant invoices; and
(ii) input tax credit as is attributable to the discount on the basis ofdocument issued by the supplier has been reversed by the recipient of thesupply.

(4) Where the value of the supply of goods or services or both cannot be determinedunder sub-section (1), the same shall be determined in such manner as may be prescribed.
(5) Notwithstanding anything contained in sub-section (1) or sub-section (4), thevalue of such supplies as may be notified by the Government on the recommendations of theCouncil shall be determined in such manner as may be prescribed.
Explanation.For the purposes of this Act,

(a) persons shall be deemed to be related persons if

(i) such persons are officers or directors of one anothers businesses;
(ii) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns, controls or holds twenty-fiveper cent. or more of the outstanding voting stock or shares of both of them;
(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a third person;
(vii) together they directly or indirectly control a third person; or
(viii) they are members of the same family;

(b) the term person also includes legal persons;

(c)persons who are associated in the business of one another in that one is thesole agent or sole distributor or sole concessionaire, howsoever described, of theother, shall be deemed to be related.