Section 15(2) (b) of CGST act read as follows
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;
my question is that only liabilities of supplier relating to such supply is added to value of supply or the overall liabilities of supplier is added (eg bank loan etc)
Section 15(2) (b) of CGST Act
Replies (4)
Quick Summary
Definitely “… in relation to such supply …”. It’s written in the provision.
So if recipient pay bank loan of supplier then it will not considered for the purpose of sec 15(2) (b) of the act and dealt in other provision right sir??
i have same doubt. Both should be included in value anyhow. supplier liability in relation to supply paid by recipient of supply to be included as per sec 15(2) (b). and if it is personal debt of supplier, to be included because the consideration is in response to, in respect of and for the inducement of the supply. This might be the correct view.
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Section 15(2)(b) strictly restricts additions to supplier liabilities that bear a direct nexus "in relation to such supply".
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General liabilities or independent debts (like a bank loan unconnected to the contract) do not qualify for inclusion under this specific provision.
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