Valuation of Goods & Services under GST

GST is levied on the ‘transaction value’. The taxable value of supply under GST includes:

  • Except GST, any taxes, duties, cess, fees, and charges levied under any Act.
  • GST Compensation Cess will be excluded if charged separately by the supplier.
  • Any amount paid or payable by the supplier that the recipient has incurred but not added in the price.
  • Any expenses incurred in relation to the supply like transport etc. should be included in the value.
  • Other than Government subsidies, all subsidies received for the supply shall be included.
  • Interest payable for delayed payment of consideration is also included.
  • Value of supply excludes discount if it is given on the invoice or when it is given post supply as a part of agreement entered into at the time of supply and the recipient reverses the proportionate credit.