CGST Circular – 76
- What is the correct valuation methodology for ascertainment of GST on Tax collection on source (TCS) under the provision of Income Tax Act, 1961
- It is clarifies that as per the above provisions, taxable value for the purposes of GST shall include the TCS amount collected under the provisions of the Income Tax Act since value to be paid to the supplier by the buyer inclusive of the said TCS (Section 15(2) – taxes under other Act)
|
Present Mechanism |
Mechanism after Circular No 76 |
|||||||
|
Particulars |
Qty |
Rate |
Amount |
Particulars |
Qty |
Rate |
Amount |
Differenc |
|
Coal |
500 |
3000 |
1500000 |
Coal |
500 |
3000 |
1500000 |
|
|
Total |
Total(A) |
|
1500000 |
Total |
Total(A) |
|
1500000 |
0 |
|
|
|
|
|
TCS |
1% |
|
15000 |
15000 |
|
|
Value for GST |
|
1500000 |
|
Value for GST |
|
1515000 |
|
|
CGST |
2.50% |
|
37500 |
CGST |
2.50% |
|
37875 |
375 |
|
SGST |
2.50% |
|
37500 |
SGST |
2.50% |
|
37875 |
375 |
|
Cess |
400 |
|
200000 |
Cess |
400 |
|
200000 |
0 |
|
|
Total GST (B) |
|
275000 |
|
Total GST (B) |
|
275750 |
750 |
|
|
Inv Value(A+B) |
|
1775000 |
|
Inv Value(A+B) |
|
1790750 |
15750 |
|
TCS |
1% |
|
17750 |
|
|
|
|
-17750 |
|
|
Gross Value |
|
1792750 |
|
Gross Value |
|
1790750 |
-2000 |
