The Karnataka Authority for Advance Ruling on the advance ruling application filed by the M/s Pankaj Enterprises has ruled that the transaction value should be treated as taxable value unless and until rejected and the value is determined u/s 15 of the CGST Act , 2017. The authority observed that “ it is clear that the GST Act contemplates treating the transaction value as the value of supply unless the same is rejected and the value determined as per Section 15 of the GST Act. It does not contemplate to consider a guidance value prescribed under another legislation to be deemed to be the value of the supply unless the transaction value itself is disputed and found not acceptable under Section 15 of the GST Act. In the latter case, the determination of the value of such supply shall be made as per the provisions of 15 of the GST Act.”

“However in the case of apartments, the land value is fixed at one-third of the value of the apartment involving the transfer of land along with the building , in the Notification No. 11/2017, Central Tax (Rate) , dated 28.06.2017. In such cases , the value of the land is calculated as per the above specification and no other value is acceptable for the said value .”

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