As per Section 15 of the CSGT act, the value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.

The value of supply shall include–

1. Any taxes, duties, cesses, fees, and charges levied if charged separately by the supplier;
2. Any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;
3. Incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;
4. Interest or late fee or penalty for delayed payment of any consideration for any supply; and
5. Subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments.

The value of the supply shall not include any discount which is given–

1. before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and,
2. after the supply has been affected, if—
   • such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and,
   • input tax credit as is attributable to the discount on the basis of the document issued by the supplier has been reversed by the recipient of the supply. Value of taxable supply.

Where the value of the supply of goods or services or both cannot be determined under sub-section (1), the same shall be determined in such manner as may be prescribed.