Section 15 CGST Act 2017 : Value of taxable supply

By | April 15, 2017
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(Last Updated On: August 4, 2018)

Section 15 CGST Act 2017

[ Section 15 CGST Act 2017 Notified w.e.f 01.07.2017 vide Notification No. 9/2017 – Central Tax Dated 28th June, 2017 ]

Section 15 CGST Act 2017 relates to Value of taxable supply and is covered in Chapter IV – Time and Value of Supply

[Note : CGST Act 2017 also known as CENTRAL GOODS AND SERVICES TAX ACT, 2017 assented by the President of India on 12-4-2017 -An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto. ]

Value of taxable supply.

15. (1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.[note-11]

(2) The value of supply shall include—

(a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier;

(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;

(c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;

(d) interest or late fee or penalty for delayed payment of any consideration for any supply; and

(e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments.

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.

(4) Where the value of the supply of goods or services or both cannot be determined under sub-section (1), the same shall be determined in such manner as may be prescribed.

(5) Notwithstanding anything contained in sub-section (1) or sub-section (4), the value of such supplies as may be notified [ Note 1 , 2, 3 ,4,5 ,6,7,8,9 ,9A,9B, 10 ,12,13] by the Government on the recommendations of the Council shall be determined in such manner as may be prescribed.

Explanation.—For the purposes of this Act,—

(a) persons shall be deemed to be “related persons” if—

(i) such persons are officers or directors of one another’s businesses;
(ii) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns, controls or holds twentyfive per cent or more of the outstanding voting stock or shares of both of them;
(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a third person;
(vii) together they directly or indirectly control a third person; or
(viii) they are members of the same family;

(b) the term “person” also includes legal persons;

(c) persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole concessionaire, howsoever described, of the other, shall be deemed to be related.


Notifications issued under Section 15 CGST Act 2017

13  Notification No 14/2018 Integrated Tax (Rate)  Dated 26 th July, 2018 Seeks to amend notification No. 8/2017- Integrated Tax (Rate) so as to notify IGST rates of various services as recommended by Goods and Services Tax Council in its 28th meeting held on 21.07.2018.

12 Notification No 13/2018 Central Tax (Rate) Dated 26th July, 2018  New CGST rates of various services

11. GST Valuation if Services provided at concessional rate by Banks: CBIC clarify Q 32 of GST FAQs on Financial Services Sector published by CBIC

1  Rates for supply of services under UTGST Act vide Notification No. 11/2017-Union Territory Tax (Rate) Dated the 28th June, 2017

2. Notify the rates for supply of services under CGST Act vide Notification No. 11/2017-Central Tax (Rate) Dated 28th June, 2017

3. To notify the rates for supply of services under IGST Act vide Notification No. 8/2017-Integrated Tax (Rate) Dated 28th June, 2017

4. Seeks to amend notification No. 11/2017-CT(R) to reduce CGST rate on specified supplies of Works Contract Services, job work for textile & textile products, printing service of books, newspapers etc, admission to planetarium, and, also to provide option to GTA & transport of passengers by motorcab service providers to avail full ITC & discharge CGST @ 6% Vide Notification No 20/2017 Central Tax (Rate) Dated 22nd August, 2017

5. Seeks to amend notification No. 08/2017-IT(R) to reduce IGST rate on specified supplies of Works Contract Services, job work for textile & textile products, printing service of books, newspapers etc, admission to planetarium, and, also to provide option to GTA & transport of passengers by motorcab service providers to avail full ITC & discharge IGST @ 12% Vide Notification No 20/2017 Integrated Tax (Rate) Dtd 22nd Aug 2017

6. Seeks to amend notification No. 11/2017-UTT(R), to reduce UTGST rate on specified supplies of Works Contract Services, job work for textile & textile products, printing service of books, newspapers etc, admission to planetarium, and, also to provide option to GTA & transport of passengers by motorcab service providers to avail full ITC & discharge UTGST @ 6% vide Notification No 20/2017 Union Territory Tax (Rate) Dtd 22nd Aug 2017

7. Seeks to amend notification No. 11/2017-CT(R) to reduce CGST rate on specified supplies of Works Contract Services vide Notification No 24/2017 Central Tax (Rate) dated 21st September, 2017

8. Seeks to amend notification No. 08/2017-IT(R) to reduce IGST rate on specified supplies of Works Contract Services. vide Notification No. 24/2017-Integrated Tax (Rate) dated  the 21st September, 2017

9. Seeks to amend notification No. 11/2017- UTT(R) to reduce UGST rate on specified supplies of Works Contract Services vide Notification No 24/2017 Union Territory Tax (Rate) dated21st September, 2017

9A  Notification No 31/2017 Central Tax (Rate)  Dated 13th October, 2017 Seeks to amend notification No. 11/2017-CT(R) 

9B Notification No 39/2017 Integrated Tax (Rate) dated 13th October, 2017 Seeks to amend notification No. 8/2017-Integrated Tax (Rate).

10. Seeks to amend notification No. 11/2017-CT(R) so as to specify rate @ 2.5% for standalone restaurants and @9% for other restaurants, reduce rate of job work on “handicraft goods” @ 2.5% and to substitute “Services provided” in item (vi) against Sl No. 3 in table. vide Notification No 46/2017 Central Tax (Rate) Dated 14th November, 2017

Final GST Determination of Value of Supply Rules Approved by GST Council 18.05.2017

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