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CHAPTER
Conditions for accepting transaction value for valuation
Reasonable nexus between measure and nature of levy of tax is sufficient -
‘Value’ does not include TCS under Income Tax Act-
proviso proviso
Contract includes value of material but some material supplied by recipient and value deducted from bill of supplier GVS Projects P Ltd. In reb
Development charges like design and tooling are includible in value
Tata Johnson Controls State of Maharashtra
Noscitur a sociis’-
GST on penal interest on EMI (Equated Monthly Instalment) -
a If the seller himself grants EMI instalments
b If loan is provided by finance company directly to the buyer
Infrastructure Development Finance Co. Ltd. ACIT
Bajaj Finance Ltd., In re Bajaj Finance Ltd. In re
No GST in delayed payment charges/interest recovered on supply of electricity, as electricity is exempt Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co. Ltd. -
TP Ajmer Distribution Ltd.,
No GST on delayed payment charges recovered from clients by stock broker
SPFL Securities Ltd., In re
SPFL Securities Ltd., In re Indo Thai Securities Ltd. In re
Udyog
excluding
Explanation
Subsidy payable to suppliers by person other than Government when part of sale price Ponni Sugar (Erode) Ltd. DCTO
EID Parry ACCT
Subsidy received from Government was not includible even earlier Neyveli Lignite CTO de hors
EID Parry ACCT COT Bongaigaon Refinery
Refinery
Subsidy not connected with specific sale not includible?
Tisco General Office Recreation Club State of Bihar
COT Bongaigaon
Ad hoc discount given after supply is not eligible for deduction from ‘value’ –
UltraTech Cement Ltd. In re
Giving trade discount after sale is a regular trade practice Maya Appliances P. Ltd. ACCT
Southern Motors State of Karnataka
Evidence that the recipient has reversed the Input Tax Credit in case of post sale discount - b ii
Issue commercial credit note without GST if recipient is eligible for full ITC vide
Trade discount can be given later through credit note IFB Industries Ltd State of Kerala
T V Sundaram Iyengar State of Karnataka State of Karnataka Reliance Industries Ltd Nagarjuna Fertilizers ACCT
Pratham Motors (P.) Ltd. ACCT
Southern Motors State of Karnataka
Maya Appliances ACCT
Incentive in nature of discount is not consideration of service
Rohan Motors Ltd. CCE
Kafila Hospitality & Travels (P.) Ltd. Commissioner of Service Tax, Delhi
Supplier can issue credit note with GST or without GST
If supplier does not issue credit note, recipient should issue debit note without GST
No adjustment of GST on bad debts
Discount not allowed as deduction from ‘value’ if given for some specific purpose or activity
ab initio