Problems on Value of Supply

1. Mr. Raghu sold goods to Mr. Bhairav for Rs. 20,000. Mr. Raghu is charging packing charges of Rs. 1,000/- and is also paying freight of Rs. 3,000 for tranporting goods from his premises to Mr. Bhairav's showroom. Determine value of supply. Calculate GST payable by Mr. Bhairav as per invoice. CGST @ 9% and SGST @ 9%.

2. Mr. Anish sold goods worth of Rs. 60,000/-. Mr. Anish also charged interest of Rs. 750/- for delay in payment. Determine the taxable value for levy of GST.

3. Mr. Altamash (UP) sold goods to Mr. Mubeen (HP) for Rs. 20,000/-. Mr. Altamash is allowing discount of Rs. 2,000/- at the time of supply. Determine value of supply for the purpose of levy of GST? Also compute the amount of GST to be levied by Mr. Altamash @ 12%.

4. Mr. Alex sold a KTM bike for Rs. 1,44,000/- with exchange of an old TVS bike. Open Market price of the new KTM bike is Rs. 1,52,000/-. The old TVS bike can be sold in the market for Rs. 20,000/-. Determine the value of supply for the purpose of levy of GST.

Solution: As Open Market Value of the new KTM bike is Rs. 1,52,000/-, the value of supply will be Rs. 1,52,000/-.

5. Croma sold iPhone 12 pro max to Ms. Sitalakshmi for Rs. 90,000/- in exchange for her old iPhone 6s which had a market value of Rs. 12,000/-. The market value of iPhone 12 pro max is Rs. 1,10,000/-. Determine the value of supply for levying GST.

Solution: As Open Market Value of the new iPhone 12 pro max is Rs. 1,10,000/-, the value of supply will be R.s. 1,10,000/-.

6. Mr. Alex sold a new KTM bike for Rs. 1,34,000/- with exchange of old TVS bike. Open Market price of the new KTM bike is not available. But the old TVS bike can be sold in the market for Rs. 20,000/-. Determine the value of supply for the purpose of levy of GST.

Solution: Since the open market price of the new KTM bike s not available, we will add the exchange price of the new KTM bike(sale price) Rs. 1,34,000 with the exchange value of the old TVS bike Rs. 20,000 and consider Rs. 1,54,000/- as the value of supply.

7. Ms. Alifa sold a watch for Rs. 34,000/- with exchange of old watch. Open Market price of the new watch as well as old watch is not available. A watch with the same features of other company is selling in the market for Rs. 51,000/-. Determine the value of supply for the purpose of levy of GST.

Solution: As open market value of the new watch and the exchange value of the old watch is not available, price of a similar product i.e. watch sold by another company will be considered as the value of supply, which is Rs. 51,000/-.

8. Mr. Arun sold goods for Rs. 44,000/- with exchange of old goods. Open Market price of the new goods as well as old goods are not available. Product of same like kind & quality is also not available in the market. Cost of purchase of the goods is Rs. 57,000/-. Determine the value of supply for the purpose of levy of GST.

Solution: As no information is available, value of supply will be 110% of cost i.e. Rs. 57,000 X 110% = Rs. 62,700/-.