Harsh Kaushik
Quick Summary
What does Section 15 Say? Section 15 of the CGST ACT 2017 talks about the Value of Supply of Goods or Services or Both shall be the Transaction Value, Which is the Price actually paid or payable for the supply of goods or services or both where the supplier and recipient of the supply are not rel
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FAQ :
The primary basis is the transaction value, which is the price actually paid or payable for the supply of goods or services, provided the supplier and recipient are not related and the price is the sole consideration.
The value includes any taxes, duties, cesses, or fees (other than GST), amounts the supplier is liable for but paid by the recipient, incidental expenses like commission and packing, interest or penalties for delayed payments, and subsidies directly linked to the price (excluding government subsidies).
Discounts are excluded if they are given before or at the time of supply and recorded on the invoice, or if given after supply, provided they are established by agreement linked to specific invoices and the recipient has reversed the attributable input tax credit.
For related party transactions, the value is generally determined by the open market value, or if unavailable, by the value of supply of goods or services of like kind and quality, as per CGST Rules 27-31.
If the value cannot be determined under sub-section (1) or other prescribed rules, it shall be determined in the manner prescribed by the government, often using methods like cost-based valuation (110% of cost) or a residual/best judgment method.
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