Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee
Law Related Issues
31 Manner of determination of amount liable to be paid by the supplier
Section 15(2)(b) of the CGST Acts provides that the value of supply shall include 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
Issue:
Since the value of supply includes an amount liable to be paid by the supplier but incurred
by the buyer, the basis for determination of the amount liable to be paid by supplier is not
specifically mentioned herein. It could lead to large scale litigations if the amount to be
determined is left open to the discretion of taxpayers.
Suggestion:
Therefore, it is suggested that the amount liable to be paid by supplier may have a reference
to the contract or agreement between suppliers and recipient by the words ‘by reason of or
in connection with’. So, supplier’s liability be restricted within the scope of the contract or
agreement.
Read Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee
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