Invoice value Vs Taxable value

‘Invoice Value’ includes GST and ‘Taxable Value’ excludes GST (i.e. assessable value on which GST is computed).

I hope Deepak's reply is based on general understanding. However, on a read of an article on GST Valuation by the GST Council, you could conclude that in most cases both the invoice value and taxable value are same.

Refer https://gstcouncil.gov.in/sites/default/files/Fliers/eflier-valuation-gst27062017.pdf

"Under GST law, taxable value is the transaction value i.e. price actually paid or payable, provided the supplier & the recipient are not related and price is the sole consideration. In most of the cases of regular normal trade, the invoice value will be the taxable value. However, to determine value of certain specific transactions, Determination of Value of Supply rules have been prescribed in CGST Rules, 2017".

IN THE OFFLINE EXCEL TEMPLATE PROVIDED BY THE GST PORTAL THE DUMMY  TAXABLE VALUE AND INVOICE VALUE ENTERED  IS DIFFERENT. TAXABLE VALUE IS WITHOUT GST TAX AND THE INVOICE AMOUNT IS GST ADDED.SO TAXABLE AMOUNT AND INVOICE AMOUNT ARE DIFFERENT MORE OVER IF BOTH THE INVOICE VALUE AND TAXABLE VALUE  ARE SAME THERE IS NO NEED FOR THE  SUPPLIER TO ENTER THE INVOICE AMOUNT SEPERATELY AND TAXABLE AMOUNT SEPERATELY. NO NEED TO PROVIDE TWO COLUMNS.

"Under GST law, taxable value is the transaction value i.e. price actually paid or payable, provided the supplier & the recipient are not related and price is the sole consideration. In most of the cases of regular normal trade, the invoice value will be the taxable value. However, to determine value of certain specific transactions, Determination of Value of Supply rules have been prescribed in CGST Rules, 2017".

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=421356#reply

The above article is for valuation purpose as per my understanding. Generally Total Invoice Value will include Taxable value + Taxes. 

With regards to GST returns, Taxable value is the value on which GST shall be computed and thus

Taxable value + GST = Invoice Value

In contrast, if one has to value the supply on which GST is to be charged, valuation rules have simply stated that the invoice value/ transaction value shall be the taxable value.

Both of these relate to completely different subject matters. Please don't get confused due to usage of the same terminology.

Dear Sir, I am exporting goods Under LUT Bond. I have charge Export Freight & Insurance charges to my Byuer. The Freight & Insurance charges shown seperatly on my Sales Invoice. In such case is my taxable value includes Freight & Insurance charges? or I have to mentioned only Total goods amount in taxable value ? In such case my Total Invoice value & Taxable value Differ

 

Sir,

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Dheeraj Aggarwal

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