On what shall GST be paid – Valuation of Supplies

The concept of Value of taxable supplies is an essential component of tax payment as GST shall be levied only on the value of a taxable supply.  The valuation of taxable supply is determined by Section 15 of the Model GST Law read with GST Valuation (Determination of the Value of Supply of Goods and Services) Rules, 2016.   The importance of these Rules augments in cases where the supplies have taken place between related parties.

As per Section 15, 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.

The Section further provides that the transaction value shall include the following components:



Further, it is pertinent to note that GST Valuation (Determination of the Value of Supply of Goods and Services) Rules need to be resorted to in order to determine transaction value in following cases:


Determination of Value Rules provides for following methods in case of above transactions:



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