1. G S T
CA.S.Chandrasekar

2. VALUE OF TAXABLE SUPPLY
Section 15
Transaction value – ie.,
Price actually paid or payable
Supplier and Recipient are not related
Price is the sole consideration for the supply
Otherwise as per the method prescribed
Supplies notified by Government on recommendation of GSTC – as per the method prescribed

3. All levies Other Than GST paid
INCLUSIONS
All levies Other Than GST paid
Amount liable to be paid in relation to supply
but incurred by the Recipient -
and not included in the price

4. INCLUSIONS Commission & Packing charged separately
Incidental expenses :
Commission & Packing charged separately
Anything done in respect of the supply at the time or before the delivery

5. Interest, late fee or penalty for delayed payment
INCLUSIONS
Interest, late fee or penalty for delayed payment
Subsidies directly linked to prices o.t. provided CG / SG

6. EXCLUSIONS Discount given before or at the time of supply
Recorded in the invoice
after the supply
it is in the terms of agreement entered at or before the time of supply
linked to relevant invoices
ITC was reversed by the recipient

7. RELATED PERSONS - DEFINITION
Officers & Directors
Partners
Members of same family
Related persons
Employer & Employee
Together controls 3rd person
Both controlled by 3rd person
Controls 25% or more
one person controls other

8. RELATED PERSONS - DEFINITION
Family means :
The spouse and children of the person and
The parents , grand parents, brothers and sisters of the person if they are wholly or mainly dependent on the said person.

9. RELATED PERSONS - DEFINITION
The term "person" also includes legal persons. 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.

10. RECOURSE TO RULES value cannot be determined u/s 15(1)
Price is not the sole consideration
Supplier-recipient are related persons
In case of notified supplies

11. RECOURSE TO RULES If dealing by related persons
Recourse to Rules even if the Supplier-Recipient relationship :
Did not influence the price;
Precedes agreement to the supply;
Has no bearing on pricing;
Has no bearing on Agreement to the Supply;
Has no relevance to the Supply;
Was to meet with different criteria or purpose

12. SPECIFIED CASES RULE 6 Sale of Foreign currency
Booking of tickets for travel
Insurance business
Selling of second hand goods (no ITC availed)
Redemption of vouchers
notified persons

13. RESORTING TO RULES Open Market Value
When Consideration is not wholly in money:
Fully in kind
Partly in Kind and Party in Money
Open Market Value

14. OPEN MARKET VALUE
“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 price is the sole consideration, to obtain such supply at the same time when the supply being valued is made.

15. NOT WHOLLY IN MONEY Open Market Value Consideration in Money
+ equivalent value of consideration
not in money
Value of Goods or Services of like kind and quality
Not Possible
Rule 4 ( cost + 10 % ) ; or
Rule 5 ( BJ )

16. Illustration Catalogue price of TV – 85000
Value of old TV exchanged – 8000
Price negotiated & agreed – 78000
Value of supply – or ??
OMV

17. BEWTEEN DISTINCT / RELATED PERSONS (other than agents)
Open Market Value (OMV)
Value of Goods or Services of like kind and quality
Not Possible
Rule 4 ( cost + 10 % ) ; or
Rule 5 ( BJ )
other person able to take credit - Value declared in invoice - deemed to be OMV

18. Illustration Purchase of Pens - 4 L Cost of delivery – 5 K
Employee of the supplier is the spouse of the purchaser
OMV – 5.2 Lacs
Value of supply ??
transaction value – 4.05 lacs

19. SUPPLY MADE OR RECEIVED THROUGH AGENT
OMV ; or
at the option of the Supplier
– 90 % of the Price of like kind and quality
– supplied to an unrelated person for resale
Not Possible
Rule 4 ( cost + 10 % ) ; or
Rule 5 ( BJ )

20. SUPPLY THROUGH AGENTS Illustration
Price charged to Wholesalers – 2.8 lacs
Agent sells the goods at MRP – 3 lacs
Value of supply ??
2.8 or 2.7

21. RESIDUARY METHOD Not possible to determine by above - Rule 4 110 % of
the Cost of Production/acquisition of such goods or
cost of provision of such services
Supplier of services may for opt for Rule 5 disregarding this rule

22. RESIDUARY METHOD Not possible to determine by above - Rule 4
reasonable means consistent with the principles and general provision of section 15 and these rules.

23. SALE OF FOREIGN CURRENCY
OPTION I
Difference between the buying/ selling rate and RBI Reference Rate X Total Units of currency
RBI Reference rate not available – 1 % of the Gross amount of Indian Rupees transaction.

24. SALE OF FOREIGN CURRENCY
OPTION I
Indian Currency not involved : 1 % of lesser of Indian Rupees equivalent of each currency exchanged

25. SALE OF FOREIGN CURRENCY
Option II
Threshold Limit (Rs.)
Percentage
250 to 1,00,000
1 % of the gross currency exchanged
1,00,000 to 10,00,000
1,000+ ½ % of the Gross currencies exchanged
10,00,00 and above
5, /10 % s.to a maximum of 60,000

26. SALE OF FOREIGN CURRENCY
Option I vs. Option II If Option II is exercised in a FY - option I cannot be opted for that FY

27. BOOKING OF TICKETS AIR TRAVEL AGENTS
Domestic Bookings
– 5 % of the basic fare
International Bookings
– 10 % of the Basic fare

28. LIFE INSURANCE BUSINESS
Not Applicable if it is purely for life cover
Gross Premium Charged
= XXX
Less : Amount allocated for Investment
Value for the purpose of paying GST
The above said fact – to be intimated to the Policy Holder

29. LIFE INSURANCE BUSINESS
Single Premium Policy
O.T (investment policy) % of the Single Premium

30. LIFE INSURANCE BUSINESS
All other Cases :
I year - 25 % of the Premium Charged
Subsequent years % of the premium charged

31. SALE OF SECOND HAND GOODS
Sale as such or after minor processing
No input credit is availed
- Difference between the selling price and
purchase price
Value of supply is negative - it is ignored

32. TOKEN /VOUCHER / COUPON OR STAMP
Money value of good or services redeemable

33. SPECIFIED SERVICE PROVIDERS
For the services provided : by such class of service providers ( section 25) can be deemed to be Nil :
Where No ITC is available on the other end.

34. PURE AGENT
RULE 7 (Exclusion)
Applicable only to services supplied

35. VALUE OF SUPPLY - PURE AGENTS
contract of supply (actual or implied) subsists between a third party and beneficiary of supply
actual recipient uses the supply for the purposes of the beneficiary
beneficiary of supply liable to pay third party (due to contract)
beneficiary authorizes (actual or implied) payment to third party by actual recipient

36. VALUE OF SUPPLY - PURE AGENTS
beneficiary aware that supply is by such third party and not by actual recipient claiming
reimbursement
invoice of actual recipient indicates separately the reimbursement claim
actual recipient claims actuals only from beneficiary
actual recipient supplies (goods or services or both) independent of the reimbursement supplies

37. VALUE OF SUPPLY - PURE AGENTS
there is a payment made to third party by a payer
CA pays the income-tax amount to the tax Department
payer is a supplier of goods or services or both to a beneficiary (client)
CA is otherwise providing tax consultancy services to the client (tax assessee)
underlying obligation to pay third party is of the beneficiary (client)
Obligation to pay the income-tax amount is always of the client (tax assessee)

38. VALUE OF SUPPLY - PURE AGENTS
payment by payer is to discharge
beneficiary’s obligation toward third party
Payment of income-tax amount to tax department is deposited against PAN of client (tax assessee) even though the amount may be transferred from CA’s bank account
third party enjoys recourse to beneficiary
in case of non-payment by payer
In case CA defaults in the payment to tax department, recovery action will lie only against the client (tax assessee) and never against the CA however much the CA may have contractual accepted with the client to pay tax promptly

39. VALUE OF SUPPLY - PURE AGENTS
contract of supply (actual or implied) subsists between a third party and beneficiary of supply
Only an obligation exists between client (beneficiary) and Government (third party)
actual recipient uses the supply for the purposes of the beneficiary
CA (recipient) uses the discharge of tax for benefit of client (beneficiary)
beneficiary of supply liable to pay third party (due to contract)
Client (beneficiary) liable to pay Government (third party)

40. VALUE OF SUPPLY - PURE AGENTS
beneficiary authorizes (actual or implied) payment to third party by actual recipient
Client (beneficiary) authorizes payment to Government (third party) by CA (recipient)
beneficiary aware that supply is by such third party and not by actual recipient claiming reimbursement
Client (beneficiary) aware that tax belongs to Government (third party) and not CA (recipient)

41. VALUE OF SUPPLY - PURE AGENTS
invoice of actual recipient indicates separately the reimbursement claim
CA (recipient) issues invoice for tax consultancy PLUS taxes paid
actual recipient claims actuals only from beneficiary
CA (recipient) issues invoice for taxes paid at actuals from client (beneficiary)
actual recipient supplies (goods or services or both) independent of the reimbursement-supplies
CA (recipient) supplies tax consultancy independent of reimbursement of tax claimed

42. RATE OF EXCHANGE Reference rate of RBI
on the date on which POT arises in terms of section 12 or 13 (Time of supply)

43. Mob :