Valuation of free Supply Material for WCT Service under GST

Read the following which is Section 15(2) of the CGST Act,

The value of supply shall include–––

(a)-

(b) 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;

Thus if value is provided by supplier then its value shall be included while computing the value under GST.

Further in Schedule I of the CGST Act, some services are deemed to be considered as supply without consideration and thus liable under GST. Value of goods supplied by client as per my interpretation should be considered under these and thus will be included while computing Value of supply under GST.

 

it mean the free Supply good also the part of sale
eg work done 100 lac and free Supply Material 50 lacs then total sales book 150 lacs
and TDS u/s 194c will deduct on 150 lacs

Originally posted by : Natwar Ladha
	it mean the free Supply good also the part of sale eg work done 100 lac and free Supply Material 50 lacs then total sales book 150 lacs and TDS u/s 194c will deduct on 150 lacs

Yes the Taxable value as per GST shall be 150 lacs here.

In free Supply Material no amount payable by service recepaint
In vlaue of supply deifnation given word liable to pay in realtion to such supply

b) 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;

then in my case free supply is not a part of GST because I am not liable to pay any amount against free Material supply

I have already given your answer, Please clarify why and on what point you are getting confused.

Sir, service receipent provide free supply of material and as per agreement i am (service provider) not liable to pay any money against FOC and
definition of GST section 15(2)(b) 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;

and sir in My case as per definition I am service provider and not liable to pay any amount against free supply by service receiver as per agreement

then GST applicable or not on free supply material ?

pls suggest...?

Yes, it is liable to GST, In Schedule I of the CGST Act, some services are deemed to be considered as supply without consideration and thus liable under GST. Value of goods supplied by client should be considered under these and thus will be included while computing Value of supply under GST. 

Please don’t get confused over and I’ll repeat again

For FOC material supplied by Service Provider: Section 15 is applicable=Liable to GST

For FOC material supplied by Customer: Schedule I is applicable=Liable to GST

 

ok Thanks sir