Cooperative society deposits, member-interest TDS exemption and credit-facility deduction claims require verification through records and supporting e...
Customs jurisdiction over EPCG condition breaches survives export-obligation discharge certificates, requiring alleged fraud and misdeclaration to be ...
Contractual tolerance requires consideration; breach recoveries, qualifying public infrastructure services and road works escape service tax liability...
Personal hearing requirements in GST adjudication were satisfied by prior opportunities and written submissions; appellate limitation received writ-pe...
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.
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.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4805
Join Channel
TaxTMI 
