EXAMPLE-90
Ram wholesaler in UP sells
100 LED (50 LEDs are 32, 25 are 42" and rest 25 are 52) to Shayam
distributor in Gujarat. The agreement provided that Ram arranged transport for
supply at the destination of Shyam i.e. place in Gujarat and he is responsible for
safe delivery up to the recipient' place. Value of 32 LED is Rs 30000 per
piece, Rs. 40000 for 42ch and Rs. 54000 for 52 respectively. Cost of transport for LED
of Rs 1,12,000 is paid by Shayam. Goods are removed against invoice from warehouse of Ram in
UP
for supply on 30.09.2017 and delivered to Shyam on 01.10.2017. (Assume GST rate
on LED @28%) Determine value of supply and tax liability under GST.
Answer
Step 1:- determine the place of
supply
Location of supplier State of
UP (where the supplier has fixed establishment)
Place of supply :- According to
section 10(1)(a) of IGST Act, where movement of goods is involved, the place of supply of goods shall
be the location of the goods at the time at which the movement of goods
terminates for delivery to the recipient. Thus, Gujarat is the location of goods
i.e. the place of supply.
Step 2:-Whether Inter-state or
Intra- state supply
In the above example location of
supplier and place of supply are in different states, thus, supply is the inter-state
supply. So IGST shall be charged on transation.
Step 3 Determine Time of supply
As
per section 12(2) of CGST Act, time of supply of goods shall be the earliest of the following
dates:-
(a)
Date of issue of
invoice
(b)
Last date on which
invoice required to be issued
(c)
Date on which
supplier receives payment
in the above example date of invoice
i.e.
30.09.2017 will be the time of
supply of goods.
This supply relates to the month
of September , thus will be shown in the Sept month return.
Step 4 Value of Supply (As per
section 15) :- Value of supply of goods and/or services shall be the transaction
value i.e., the price actually paid or payable for the said supply. Price
actually paid or payable includes obligation of supplier paid by the recipient
which includes cost of transportation.
Value of Supply=( 50*30000
+25*40000 +25*54000) +112000 (cost of transport)
=Rs. 3962000
Integrated
tax on inter-state supply ==28% of 3962000 =Rs. 1109360