Instructions in light of Judgment of Hon’ble Supreme Court on Sales Tax Incentive Scheme-reg.

Transaction value inclusion: sales tax retained under incentive schemes treated as part of assessable value.

Under the transaction value regime, amounts of sales tax charged to the buyer but retained by the seller under an abatement/incentive scheme are not excludible from the transaction value unless actually paid to the State; such retained amounts must be included in the assessable value, and assessing officers and trade should be informed for finalisation of similar cases.