Every fiscal statue makes rules and regulations regarding the determination of tax value, similarly, under GST, Section 15 of the CGST Act talks about the valuation of supply of goods or/and services supplied in different circumstances and to a different person. In this article, we will discuss the different GST valuation rules.
As per the rules of valuation under GST, the tax value can be determined based on the ad-valorem basis. In other words, the taxpayer can determine the value of tax based on the assessed value of goods or/and services supplied. However, these three things shall be taken into consideration at the time of valuation of tax under GST:
i) Transaction Value As per GST, the taxable value is considered as transaction value. In other words, the value that has been paid or has to be paid by the buyer to the supplier will be considered as transaction value under GST. It shall be noted the supplier and buyer shall not be related persons and price is the only consideration. However, for some special cases, here explain the special valuation rules, the transaction value has been determined in special valuation rules of GST, 2017.
ii) Compulsory Inclusions Here are some major things that shall form a part at the time of valuation in GST:
Currently, the valuation rules are up on the CBEC site for the common public as they have been recently released. The common public can also comment on these rules as these rules will impact all the types of existing businesses. So, keeping the common user in mind we have bifurcated these valuations into 10 different scenarios where valuation rules will apply under GST: