Value of a taxable supply :
The value of a supply of goods and/or services shall be the transaction value, that is the price actually paid or payable for the said supply of goods and/or services where the supplier and recipient of the supply are not related and the price is the sole consideration for the supply. Section 15 of the Model GST Law provides that the transaction value for the purpose of valuing a taxable supply shall include;
- any amount that the supplier is liable to pay in relation to such supply which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods and/or services.
- the value, apportioned as appropriate, of such goods and/or services as are supply directly or indirectly by the recipient of the supply free of charge or at reduced cost for use in connection with the supply of goods and / or services being valued, to the extent such value has not been included in the price actually paid or payable
- royalties and licence fees related to the supply of goods and / or services that the recipient of supplies must pay either directly or indirectly, a condition of the said supply, to the extent that such royalties and fees are not included in the price actually paid or payable
- any taxes, duties, fees and charges levied under any statute other than the SGST Act or the CGST Act or the IGST Act
- incidental expenses such as commission and packing, including any amount charged for anything done by the supplier in respect of the supply of the goods and/or services at the time of, or before the delivery of goods /supply of services.
- subsidies provided in any form or manner, linked to the supply
- any reimbursable expenditure or cost incurred by or on behalf of the supplier and charged in relation to the supply of goods and / or services
- any discount or incentives that may be allowed after the supply has been effected. However, post-supply discount which is established as per the agreement and known at before the time of supply linked to relevant invoices shall not be included in the transaction value.