Sankalp Pvt. Ltd. provided the following particulars relating to goods sold by it to Dhoom Pvt. Ltd.: Particulars Amount (₹) List price of the goods…

CA Intermediate · Taxation · MTP · September 2026
Sankalp Pvt. Ltd. provided the following particulars relating to goods sold by it to Dhoom Pvt. Ltd.: Particulars Amount (₹) List price of the goods (exclusive of taxes and discount) 50,000 Tax levied by the Municipal Authority on the sale of such goods 6,000 Packing charges (not included in the list price above) 2,500 Subsidy received from an NGO, directly linked to price (included in the list price above) 3,000 Paid to one of the vendors by Dhoom Pvt. Ltd. in relation to the service provided by the vendor to Sankalp Pvt. Ltd. (not included in the list price above) in relation to above supply of goods 2,000 Dhoom Pvt. Ltd. delayed the payment and paid ₹ 5,000 (including GST of 18%) as interest to Sankalp Pvt. Ltd.

Suggested Answer and Working Notes:

Computation of value of taxable supply made by XYZ Pvt. Ltd. Particulars Amount (₹) List price of the goods (exclusive of taxes and discounts) 50,000 Tax levied by Municipal Authority on the sale of such goods [Taxes other than GST, if charged separately, are includible in the value of supply.] 6,000 Packing charges [Being incidental expenses, same are includible in the value of supply.] 2,500 Subsidy received from NGO [Since subsidy is received from a non-Government body and directly linked to the price, the same is includible in the value of supply.] Nil Payment made by ABC Pvt. Ltd. in relation to service provided by vendor to XYZ Pvt Ltd. [Amount that supplier is liable to pay, but incurred by the recipient, is includible in the value of supply.] 2,000 Interest for delayed payment (rounded off) [Includible in the value of supply] [5,000 × 100/118] 4,237 Value of taxable supply 64,737

Topics: Paper 3B: Goods and Services Tax

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