The High Court held that the value of free diesel supplied by...

The High Court held that the value of free diesel supplied by the service recipient to the Goods Transport Agency (GTA) service provider cannot be included in the taxable value for calculating GST. This is based on Supreme Court judgments which consistently ruled that where the service recipient provides free supplies like diesel or explosives, their value cannot be added to the consideration paid to the service provider for determining service tax/GST liability. The cost of free supplies borne by the recipient is not part of the 'gross amount charged' by the service provider. Therefore, as per the agreement where the service recipient bore the fuel cost, this free diesel value cannot be added to the taxable GTA service value u/ss 15(1) and 15(2)(b) of the CGST Act for GST calculation. The High Court set aside the Advance Ruling order which had held otherwise.