Example: - 20

Mr. X supplied goods to Mr Y for Rs. 10000 instead of  Rs.12000 and  in relation to this manufacturer A,  provides price support of Rs 2000 to X.

Ans.  Section 15(2)(e) of GST law provides that subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments shall form part of Transaction value.

Therefore, subsidy provided by A to Mr. X shall form part of Transaction value.