Inclusion in the value for GST u/s 15(2)(b)

237 views 2 replies
Amount supplier is liable to pay, is actually paid by recipient, is not included in the price charged, but will form part of the value for GST. Example from a book : A sells goods to B for ₹ 10,000. It was A's obligation to transport goods to B's premises. But, B incurs ₹ 500 for such transport. So, B will pay only ₹ 9,500 to A after deducting freight charges. So, in this case, what is the value for GST in the hands of A. Is it ₹ 10,500 or ₹ 10,000? In either case, will it not be double taxation? Because, B would have already paid GST on freight charges of ₹ 500. If it is included again in A's hands as per 15 (2)(b), this amount would suffer tax two times right? Also, would B be eligible for ITC two times? This doesn't make sense. I believe value should only be ₹ 9,500 in A's hands. Could someone explain please?
Replies (2)
as far as my knowledge is concerned the aforesaid case is related to sec 15 (2)(c) & not under (b) . freight charges incurred on or before delivery shall be added into the Assessable value. thus invoice of 10500 shall be made
if freight charges is 500/- then the taxable value will be goods value plus freight I e RS 10500/-


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details