Valuation under gst

660 views 5 replies

Gaurav

Working Professional

19 Points Joined July 2007

Hi, need clarification on transaction value to be derived for computing GST libility to be paid by manufacturer. Green house manufacturers (poly house and net house) purchase different materials as GI Pipes/ Drip system/ Shade net etc from different vendors by paying duty. They then proceed to erect the green house for the farmer at the farmers site. Now under GST the tax rate is defined under 18 % on Greenhouse component. So basically the manufacturer will bill to farmer, including duty , takes the ITC and pay off the remaing tax liability if any. Now under the scheme for construction of Green houses, subsidy is provided by horticulture department to the tune of 50-75%, varying from state to state. I need clarification for deriving Transaction Value. As manufacture recives full amount from farmer but 65% of the amount is received by the farmer from Govt in form of subsidy. Now will this 65% amount to be excluded while calculating GST liability of Manufacturer. Regards Gaurav Saraswat

Replies (5)

Manveer Khanuja

2 Points Joined October 2017

Have you received solution of your query?

deepak

accounts officer

23 Points Joined December 2011

Since, the Subsidy will be on the total value of the loan, which will include Taxes on a later on occasion. Billing should be @ 100% only.

Arjun SIngh

seo

22 Points Joined March 2018

Originally posted by : Manveer Khanuja
	Have you received solution of your query?

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RAMESH KUMAR SINGLA

PROFESSIONAL

1777 Points Joined September 2017

From the facts it appears that the subsidy has been given to the farmer/consumer and not to the supplier of greenhouse. Therefore, the subsidy is not directly linked to the price of supply of green house. The manufacturer should collect GST at the full value of green house without bothering about the amount of subsidy in terms of section 15 of CGST Act.

Talagunada Manjunatha

Tax Consultants

22 Points Joined January 2014

we have construction of Green house to farmers while supply material to construct from various venders the supply material in Constructor name again we have to delivery the same goods to site. like that so many supplies we will rise GST invoice after completion of the work before that we supply goods in DC with e-way bill we con't rise GST Invoice in each step kindly advise ne how to supply material to site for construction of Green house