Page 95 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : PULLURI MINING & LOGISTICS PVT. LTD. 181
The definition of consideration u/s. 2(31) of the CGST Act, 2017 has been stipu-
lated as under :-
“Consideration” in relation to the supply of goods or services or both in-
cludes -
(a) any payment made or to be made, whether in money or oth-
erwise in respect of, in response to, or for the inducement of,
the supply of goods or services or both, whether by the recipi-
ent or by any other person but shall not include any subsidy
given by the Central Government or a State Government;
(b) the monetary value of any act or for bearance, in respect of, in
response to, or for the inducement of the supply of goods or
services or both, whether by the recipient or by any other per-
son but shall not include any subsidy given by the Central
Government or a State Government :
Provided that a deposit given in respect of the supply of
goods or services or both shall not be considered as payment
made for such supply unless the supplier applies such deposit
as consideration for the said supply;
In the instant case, the service recipient i.e., M/s. Sree Jayajyothi Cements Private
Limited is providing diesel to the equipments and vehicles used by the applicant
for executing the mining contracts at different places stipulated in the work or-
der. Diesel so provided by the service recipient to the applicant for use in the
equipments and vehicles of the applicant forms an important and integral com-
ponent of this business process, without which the process of excavation of lime-
stone at different mines, transportation and delivery of Limestone to Yanakandla
Limestone Hopper belonging to the recipient. As per Section 15(2)(b) of CGST
Act, the value of supply includes any amount that the supplier is liable to pay in
relation to such supply but which has been incurred by the recipient of the sup-
ply and not included in the price actually paid or payable for the goods or ser-
vices or both;
8. Thus from the above legal provisions discussed above, it gets amply
clear that 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 service or both is includible in
value.
RULING
Question : Whether the HSD Oil issued free of cost by the service recip-
ient to the applicant would form part of value of supply of
service by the applicant as per Section 15 of the CGST Act,
2017? And more particularly under sub-section (2)(b) of Sec-
tion 15 of the CGST Act”.
Answer : The HSD Oil issued free of cost by the service recipient to
the applicant would form part of value of supply of service
by the applicant.

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GST LAW TIMES  13th August 2020  95