GST to be paid on amount received for supply together with commission, transportation & stationery charges etc.: AAR

Case Details: Authority for Advance Rulings, West Bengal Nathmull Bhagchand Jain, In re - [2022] 139 taxmann.com 169 (AAR-WEST BENGAL)

Judiciary and Counsel Details

• • Brajesh Kumar Singh & Joyjit Banik, Member
  • Supriyo Bose & Subrata Ray, Authorised Advs. for the Applicant.

Facts of the Case

The applicant procured kerosene oil from oil marketing company and supplied same to ration dealers who distributed kerosene to ration card holders. It filed an application for advance ruling to determine whether amount received for supply together with commission charges, transportation charges, stationery charges, compensation towards handling and evaporation loss shall form part of value of supply.

AAR Held

The Authority for Advance Ruling observed that kerosene oil would be procured by the applicant from oil marketing company and supplied to ration dealers in terms of license granted by State Government. The value of supply as per section 15(2) shall include incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply. Therefore, the amount received for supply together with commission charges, transportation charges, stationery charges, compensation towards handling and evaporation loss shall form part of value of supply on which GST would be payable.