VALAUTION OF SUPPLY WHEN INCLUSIVE OF TAXES – Semantic Taxgen Pvt Ltd
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VALAUTION OF SUPPLY WHEN INCLUSIVE OF TAXES

December 13, 2017

Where the value of supply is inclusive of integrated tax or, as the case may be, central tax, State tax, Union territory tax, the tax amount shall be determined in the following manner, namely,-

Tax amount = (Value inclusive of taxes X tax rate in % of IGST or, as the case may be, CGST, SGST or UTGST) ÷ (100+ sum of tax rates, as applicable, in %).

E.g :- If a Person receives an amount for advances, partial payment or other way Rs. 1180 , on this amount GST levy was 18% for the purpose of valuation of supply   will be calculated as follows:-

1180/100%+18% *100%=1000/-

In this case of value of supply will be 1000/-

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