The document discusses the valuation of supplies under section 15 of the CGST/SGST Act. It states that as per section 15(1), the value of a supply shall be the transaction value which is the price actually paid or payable where the supplier and recipient are not related. The value shall also include any amount the supplier is liable to pay that was incurred by the recipient, incidental expenses charged by the supplier, interest/late fees/penalties for delayed payment, and subsidies directly linked to the price excluding central/state government subsidies. Discounts given before or at supply are excluded from transaction value but those given after supply are included. Where transaction value cannot be determined, valuation shall be as prescribed. Valuation rules

1. Ambarish R
Asst. Professor
Valuation of Supply
U/s 15

3. As per section 15(1): The value of a supply of goods and/or services shall be the transaction value,
that is the price actually paid or payable for the said supply of goods and/or services where the
supplier and the recipient of the supply are not related and the price is the sole consideration for the
supply.

7. The value of supply shall include:
(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 and/or services.

8. As per section 15(2) the value of supply shall include
(c) incidental expenses, such as, commission and packing, charged by the supplier to the recipient of a
supply, including any amount charged for anything done by the supplier in respect of the supply of goods
and/or services at the time of, or before delivery of the goods or, as the case may be, supply of the services.

9. As per section 15(2) the value of supply shall include:
(d) interest or late fee or penalty for delayed payment of any consideration for any supply

10. As per section 15(2) the value of supply shall include:
(e) subsidies directly linked to the price excluding subsidies
provided by the Central and State governments
Explanation.- The amount of subsidy shall be included in the
value of supply of the supplier who receives the subsidy

12. Exclusion of discount in Transaction Value
Section 15(3)(a) of Model CGST/ SGST Act, 2016:
Discount given before or at time of supply

13. Section 15(3)(b) of Model CGST/ SGST Act, 2016:
Discount given AFTER supply

14. As per section 15(4): Where the value of the supply of goods or services cannot be determined
under sub-section (1), the same shall be determined in such manner as may be prescribed.

15. Section 15(5) of Model CGST/ SGST Act, 2016: Valuation rules and TV not applicable