Author: admin_gst

Whether pre-supply discounts allowed before or at the time of supply are includible in the transaction value?
Question 9
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Whether pre-supply discounts allowed before or at the time of supply are includible in the transaction value?
Ans. No, provided it is allowed in the course of normal trade practice and has been duly recorded in the invoice.
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Whether post-supply discounts or incentives are to be included in the transaction value?
Question 8
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Whether post-supply discounts or incentives are to be included in the transaction value?
Ans. Yes. Unless the post-supply discount is established as per the agreement and is known at or before the time of supply and specifically linked to relevant invoice.
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Can the transaction value declared under section 15(1) be accepted?
Question 7
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Can the transaction value declared under section 15(1) be accepted?
Ans. Yes, it can be accepted after examining for inclusions in section 15(2). Furthermore, the transaction value can be accepted even where the supplier and recipient are related, provided the relationship has not influenced the price. (Rule 3(4) of draft

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What is to be done if there are certain factors affecting price though the transaction is not covered by section 15(4)?
Question 6
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. What is to be done if there are certain factors affecting price though the transaction is not covered by section 15(4)?
Ans. Section 15(2) provides the list of adjustments that may be made to make the price of a transaction reliable for purposes of determining tax payable

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Is reference to Valuation Rules required in all cases?
Question 5
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Is reference to Valuation Rules required in all cases?
Ans. No. Reference to Valuation Rules is required only in cases listed under section 15(4) i.e., where consideration payable is not money, or parties to the transaction are related.
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Is contract price not sufficient to determine valuation of supply?
Question 4
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. Is contract price not sufficient to determine valuation of supply?
Ans. Contract price is more specifically referred to as 'transaction value' and that is the basis for computing tax. However, when the price is influenced by some factors like relationship of parties or certain transactions are deemed to be supply, which do

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Are there separate valuation provisions for CGST, SGST and IGST and Goods and Services?
Question 3
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. Are t

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What is transaction value?
Question 2
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. What is transaction value?
Ans. Transaction value refers to the price actually paid or payable for the supply of goods and or services where the supplier and the recipient are not related and price is the sole consideration for the supply. It includes any amount which the supplier is liable to pay but which has been incurred by the recipient of the supply.
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What is the value of taxable supply to be adopted for the levy of GST?
Question 1
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is the value of taxable supply to be adopted for the levy of GST?
Ans. The value of taxable supply of goods and services shall ordinarily be 'the transaction value' which is the actually the price paid or payable, when the parties are not related and price is the sole consideration. The MGL further elaborates vario

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Let’s say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when services provided and invoice issued before change in rate in April 2017, but payment received after change in rate in June 2017?
Question 14
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. Let's say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when services provided and invoice issued be

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What will be the time of supply in continuous supply of services?
Question 13
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. What will be the time of supply in continuous supply of services?
Ans. The time of supply shall be the due date of payment, if ascertainable from the contract. If not ascertainable, it will be earliest of date of receipt of payment or the date of issue of invoice or completion of event where payment is linked to completion o

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What is time of supply of service in case of tax payable under reverse charge?
Question 12
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. What is time of supply of service in case of tax payable under reverse charge?
Ans. The time of supply will be the earliest of the following dates:
a) date of receipt of services;
b) date on which payment is made;
c) date of receipt of invoice;
d) date of debit in the books of accounts by supplier.
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Suppose part advance payment is made or invoice issued is for part payment, whether the time of supply will cover the full supply?
Question 11
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. Suppose part advance payment is made or invoice issued is for part payment, whether the time of supply will cover the full supply?
Ans. No. The supply shall be deemed to have been made to the extent it is covered by the invoice or the part payment.
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Suppose, invoice is not issued and date of payment or date of completion of provision of service are also not ascertainable, what will be the time of supply?
Question 10
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. Suppose, invoice is not issued and date of payment or date of completion of provision of service are also not ascertainable, what will be the time of supply?
Ans. The time of supply shall be the date on which the recipient shows the r

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What does “date of receipt of payment” mean?
Question 9
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. What does “date of receipt of payment” mean?

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What is time of supply of service when invoice is issued within prescribed period?
Question 8
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. What is time of supply of service when invoice is issued within prescribed period?
Ans. The time of supply of service in such cases shall be the earliest of the following:
(i) date of issue of invoice; or
(ii) the date of receipt of payment.
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What is time of supply of service when invoice is not issued within prescribed period?
Question 7
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. What is time of supply of service when invoice is not issued within prescribed period?
Ans. The time of supply of service in such cases shall be the earliest of the following:
(i) date completion of the provision of service; or
(ii) the date of receipt of payment.
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When does the liability to pay GST arise in respect of supply of services?
Question 6
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. When does the liability to pay GST arise in respect of supply of services?
Ans. Unlike goods, in the case of services, the time of supply is determined by the fact whether the invoice for supply of services has been issued within the prescribed period or beyond such prescribed period.
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Statute, statutory provisi

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Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 5 or 6 of Section 12 or that of Section 13 of MGL, how will time of supply be determined?
Question 5
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 5 or 6 of Section 12 or that of Section 13 of MGL, how will time of supply be determined?
Ans. There is a residual entry in Sectio

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What is time of supply of goods sent on approval basis?
Question 4
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What is time of supply of goods sent on approval basis?
Ans. In case of supply on approval basis, the time of supply shall be the time at which it is known whether a supply will take place or six months from the date of supply, whichever is earlier.
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What is time of supply of continuous supply of goods?
Question 3
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. What is time of supply of continuous supply of goods?
Ans. The time of supply of continuous supply of goods is;
a) where successive statements of accounts or successive payments are involved, the date of expiry of the period to which such successive statements of accounts or successive payments relate.
b) where there are no successive

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When does the liability to charge GST arise in respect of supply of goods?
Question 2
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. When does the liability to charge GST arise in respect of supply of goods?
Ans. Section 12 of the MGL provides for time of supply of goods. The time of supply of goods shall be the earliest of the following namely,
(i) the date on which the goods are removed by the supplier, where the supply of goods require removal

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What is time of supply?
Question 1
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is time of supply?
Ans. The time of supply fixes the point when t

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Whether goods supplied on hire purchase basis will be treated as supply of goods or supply of services? Why?
Question 16
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. Whether goods supplied on hire purchase basis will be treated as supply of goods or supply of services? Why?
Ans. Supply of goods on hire purchase shall be treated as supply of goods as there is transfer of title, albeit at a future date.
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Whether Works contracts and Catering services will be treated as supply of goods or supply of services? Why?
Question 15
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Whether Works contracts and Catering services will be treated as supply of goods or supply of services? Why?
Ans. Works contract and catering services shall be treated as supply of service as specified in Schedule-II of MGL.
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