Section 15 of CGST Act 2017 : Value of Supply

Price Actually Paid or Payable for the Supply

i) Inclusions

a) All Taxes Other than GST (CGST, SGST, UTGST, IGST, Compensation Cess)

b) Obligations: 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 or services or both

c) Incidental Expenses Like Packing, Commission: Incidental Expenses like Packing, Commission charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services.

d) Interest, Penalty etc: Interest, Penalty or late fee for delayed payment of any consideration for any supply

e) Subsidy: Subsidies directly linked to the price excluding subsidies provided by the Central Government and State Government.

ii) Exclusions

Discount of Any Kind: The value of supply shall not include any discount which is given-  

    - Before or at the time of the supply if such discount has been duly recorded in the invoice in respect of such supply and

    - After the supply has been effected, if-

i)Such Discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices and

ii)Input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply.