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TMI Blog2022 (8) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... yed payment and direct subsidies (except government subsidies) are required to be added to the price (if not already added) to arrive at the taxable value . It is observed that M/s UPCL M/s PITCUL are correctly including all the components of the cost incurred by them for arriving at the pricing of goods. Furthermore, inclusion of other components namely Contingency Charges, 0/H Supervision Charges, Labor Cess on Centralised Mat., etc. by M/s UPCL M/s PITCUL, appears to be in terms of the agreement entered between the applicant and the said two entities. And in view of the provisions of Section 15 of the CGST Act, 2017, M/s UPCL M/s PITCUL are correctly adding up all the other agreed upon components, to arrive at the transaction value for the purpose of payment of GST - the component of the GST paid by M/s UPCL M/s PITCUL on the supplies received by them from their vendors, is the cost for them and is one of the many components which constitutes the transaction value for the supply in question and is the price actually payable (transaction value) for the said supply of work contract to the applicant. Therefore, the transaction value arrived by M/s UPCL M/s PITCUL is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... installation commissioning services with civil work is correct as per the present GST regime ? 3. At the outset, we would like to state that the provisions of both the CGST Act and the SGST Act are the same except for certain provisions; therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the SGST Act. 4. The Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 5. As per the said sub-section (2) of Section 97 of the Act advance ruling can be sought by an applicant in respect of: (a) Classification of any goods or services or both (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid (e) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Cese on Centralized Mat. etc., are added by them. Thereafter, these two entities i.e. M/s UPCL and M/s PITCUL again charge applicable GST on the said transaction value; hence they have to pay GST twice, which is against the spirit of the statute. 8. In the present case we are not deciding any wider question but restricting our conclusion to the facts and circumstances which were filed for our consideration in the application. Now we proceed by taking up the issue: 8.2 In the instant case the issue before us is what constitutes transaction value or What is transaction value for the purpose of payment of applicable GST? In this regard we find that Section 15 of the Central Goods and Services Tax Act, 2017, deals with Value of taxable supply . Section 15 of the Central Goods and Services Tax Act, 2017 provides common provisions for determining the value of goods and services. It provides the mechanism for determining the value of a supply which is made between unrelated persons and when price and only the price is the sole consideration of the supply. Hence, to have a clear understanding of the matter, the same is reproduced hereunder: SECTION 15. Value of taxab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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 . 8.5 From the above wording of the statute it is clear that the value of supply of goods or services or both shall be the transaction value , which is the price actually paid or payable for the said supply of goods or services and in the instant case as admitted by the applicant, supply by M/s UPCL M/s PITCUL includes the component of GST paid by them on the Goods and Services received by them from different vendors, while arriving at the transaction value of the Services supplied by them to the applicant. 8.6 We observe that M/s UPCL M/s PITCUL are correctly including all the components of the cost incurred by them for arriving at the pricing of goods. Furthermore, inclusion of other components namely Contingency Charges, 0/H Supervision Charges, Labor Cess on Centralised Mat., etc. by M/s UPCL M/s PITCUL, appears to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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