Dear Sir, Please clarify the invoice process (as per new GST)
I purchase X material @ 60/- per kg. Quantity: 2000 kgs (from Out state)
they charged basic price 120000/-
IGST (18%): 21600/-
transport: 10000/-
Total: Rs.151600/-
Now My value addition 10- per kg
now i want to sell in local
basic price : 140000/-
CGST 9%12600/-
SGST 9% 12600/-
transport: 3000/-
Total: 168200/-
Now Please let me know the taxable amount, And is it right?
3600 (25200-21600)
Section 15 of CGST Act, 2017 is very clear that GST is psayable on Transaction Value, which is the price actually paid or payable for the said supply of goods or services or both.IGST, SGST, UTGST and SGST charged on supply or services will not be included. As per Section 15(c), Incidental expenses, including commission and packing charged by the supplier to the receipent of a supply and any amount charged for anything done by the supoplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply or both are includicle in the value.
Thus freight/transportation needs to be included for the purpose of calculation of Central Tax as well as State Tax.
thank you Mr.Akhilesh.
Thank you sir
CAclubindia
