Amended and updated notes on section 15 of CGST Act, 2017. Detail discussion on provisions and rules related to value of Taxable Supply.
Chapter IV (Sections 12–15) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to time and value of supply. Section 15 of CGST 2017 provides for value of Taxable Supply.
Recently, we have discussed in detail section 14 (Change in rate of tax in respect of supply of goods or services) of CGST Act 2017. Today, we learn the provisions of section 15 of Central GST Act 2017.
Section 15 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 15 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | IV |
| Chapter Name | Time and value of supply |
| Section No. | 15 |
| Section Name | Value of Taxable Supply |
| Updated 2024 Edition | GST Law Book PDF |
Relevant Rules and Forms for GST Section 15:
- Rule 27: Value of supply of goods or services where the consideration is not wholly in money
- Rule 28: Value of supply of goods or services or both between distinct or related persons, other than through an agent
- Rule 29: Value of supply of goods made or received through an agent
- Rule 30: Value of supply of goods or services or both based on cost
- Rule 31: Residual method for determination of value of supply of goods or services or both
- Rule 31A: Value of supply in case of lottery, betting, gambling and horse racing
- Rule 32: Determination of value in respect of certain supplies
- Rule 32A: Value of supply in cases where Kerala Flood Cess is applicable1
- Rule 33: Value of supply of services in case of pure agent
- Rule 34: Rate of exchange of currency, other than Indian rupees, for determination of value
- Rule 35: Value of supply inclusive of integrated tax, central tax, State tax, Union territory tax
Section 15 of Central GST – Value of Taxable Supply1
Section 15 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.
Section 15(1) of CGST Act
Section 15(1): The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.
Section 15(2) of CGST Act
Section 15(2): The value of supply shall include–––
- (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier;
- (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;
- (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;
- (d) interest or late fee or penalty for delayed payment of any consideration for any supply; and
- (e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments.
Explanation: For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy.
Section 15(3) of CGST Act
Section 15(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 in the 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 or before 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 of document issued by the supplier has been reversed by the recipient of the supply.
Section 15(4) of CGST Act
Section 15(4): Where the value of the supply of goods or services or both cannot be determined under sub-section (1), the same shall be determined in such manner as may be prescribed.
Section 15(5) of CGST Act
Section 15(5): Notwithstanding anything contained in sub-section (1) or sub-section (4), the value of such supplies as may be notified by the Government on the recommendations of the Council 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 another’s 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-five per 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 the sole agent or sole distributor or sole concessionaire, howsoever described, of the other, shall be deemed to be related.
- Section 15 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎