How to determine Value of supply if its inclusive of IGST, CGST & SGST

Rule-35 of CGST Rules 2017

35. Val­ue of sup­ply inclu­sive of inte­grat­ed tax, cen­tral tax, State tax, Union ter­ri­to­ry tax.-

Where the val­ue of sup­ply is inclu­sive of inte­grat­ed tax or, as the case may be, cen­tral tax, State tax, Union ter­ri­to­ry tax, the tax amount shall be deter­mined in the fol­low­ing man­ner, namely,-

 

Tax amount = (Val­ue inclu­sive of tax­es X tax rate in % of IGST or, as the case may be, CGST, SGST or UTGST) ÷ (100+ sum of tax rates, as applic­a­ble, in %)

 

Expla­na­tion.- For the pur­pos­es of the pro­vi­sions of this Chap­ter, the expressions-

  • open mar­ket val­ue” of a sup­ply of goods or ser­vices or both means the full val­ue in mon­ey, exclud­ing the inte­grat­ed tax, cen­tral tax, State tax, Union ter­ri­to­ry tax and the cess payable by a per­son in a trans­ac­tion, where the sup­pli­er and the recip­i­ent of the sup­ply are not relat­ed and the price is the sole con­sid­er­a­tion, to obtain such sup­ply at the same time when the sup­ply being val­ued is made;
  • sup­ply of goods or ser­vices or both of like kind and qual­i­ty” means any oth­er sup­ply of goods or ser­vices or both made under sim­i­lar cir­cum­stances that, in respect of the char­ac­ter­is­tics, qual­i­ty, quan­ti­ty, func­tion­al com­po­nents, mate­ri­als, and the rep­u­ta­tion of the goods or ser­vices or both first men­tioned, is the same as, or close­ly or sub­stan­tial­ly resem­bles, that sup­ply of goods or ser­vices or

Leave a Reply

Your email address will not be published. Required fields are marked *