Page 120 - CA Final GST

Badlani Classes

services or both at the time of, or before delivery of goods or supply
of services;
Example: Loading, Freight etc
Example: Mr X goes to haldiram outlet and buys dry fruits worth
Rs 2000/-. Mr X ask for the special packing for which Rs 500/- is
charged for packing. Here, transaction value will be Rs 2500/-.

d- interest or late fee or penalty for delayed payment of any
consideration for any supply; and
Example: A supply priced at ` 2,000 is made, with a credit period
of 1 month for payment. Thereafter interest of 12% is charged.
The payment is received after the lapse of two months from the
date of supply. The amount of 12% p.a. (i.e. 1% per month) on
Rs.2,000 for one month after the free credit period is ` 20. Such
interest will be added to the value and thus, the value of taxable
supply will work out to be `2,020.

e- subsidies directly linked to the price excluding subsidies provided by
the Central Government and State Governments.
Example: Amount from friend.
Example: Sale of urea by manufacturer at the recommended price
by the government (at lower price). The supplier is paid subsidy
directly by government. Here subsidy is not to be included in
transaction value.
Example: The selling price of a notebook is Rs.50. For notebooks
sold to students in Government schools, a company uses its CSR
funds to pay the seller Rs.30, so that the students pay only Rs.20
per notebook. The taxable value of the notebook will be Rs.50, as
this is a non- government subsidy. If the same subsidy is paid by
the Central Government or State Government, the taxable value
of the notebook would be Rs.30.

Explanation.–For the purposes of this sub-section, the amount of
subsidy shall be included in the value of supply of the supplier who
receives the subsidy.

3- The value of the supply shall not include any discount which is given–
a- before or at the time of the supply if such discount has been duly
recorded in the invoice issued in respect of such supply; and
b- after the supply has been effected, if –
i- such discount is established in terms of an agreement entered
into at or before the time of such supply and specifically linked
to relevant invoices; and
ii- input tax credit as is attributable to the discount on the basis of
document issued by the supplier has been reversed by the
recipient of the supply. Page119

Central Goods & Services Tax Act, 2017