Gulati Ltd., a registered supplier in Mumbai (Maharashtra), has supplied goods to Mridul Traders and Kalu Motors Ltd. located in Ahmedabad (Gujarat)…

Computation of GST liability S. No. Particulars Mridul Traders (₹) Kalu Motors Ltd. (₹) (i) Price of the goods 10,000 30,000 (ii) Add: Packing charges (Note-1) 500 (iii) Add: Commission (Note-1) 500 (iv) Add: Weighment charges (Note-1) - 2,000 (v) Less: Discount for prompt payment (Note-2) - 1,000 Value of taxable supply 11,000 31,000 IGST payable @ 18% (Note-3) 1,980 CGST payable @ 9% (Note-4) 2,790 SGST payable @ 9% (Note-4) 2,790 Notes: 1. Incidental expenses, including commission and packing, charged by supplier to recipient of supply is includible in the value of supply. Weighment charges are also incidental expenses, hence includible in the value of supply [Section 15 of the CGST Act, 2017]. 2. Since discount is known at the time of supply, it is deductible from the value in terms of section 15 of the CGST Act, 2017. 3. Section 10 of the IGST Act, 2017 provides that where the supply involves movement of goods, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient. Thus, place of supply is Gujarat. Further, where the location of the supplier and the place of supply are in two different States, supply of goods shall be treated as a supply of goods in the course of inter-State trade or commerce. Since supply made to Mridul Traders is an inter-State supply, IGST is payable.