Determination of Value of exempt supply and value of total turnover for calculation on input tax attributable to common inputs, input services and capital goods :
Exempt Supply
Value of exempt supply includes:-
a. Supplies which attracts nil rate of tax
b. Exempt supplies under CGST Act and IGST Act.
c. Non-taxable supply
d. Supplies on which the recipient is liable to pay tax on reverse charge basis
e. Transactions in securities, sale of land and sale of building.
i. The value of land and building shall be taken as the same as adopted for the purpose of paying stamp duty;
ii. The value of security shall be taken as one per cent. of the sale value of such security.
Value of exempt supply excludes:
* Supply of services having place of supply in Nepal or Bhutan, against payment in Indian Rupees
* the value of services by way of accepting deposits, extending loans or advances in so far as the consideration is represented by way of interest or discount, except
* in case of a banking company or a financial institution including a nonbanking RR financial company, engaged in supplying services by way of accepting deposits,
*extending loans or advances;
* the value of supply of services by way of transportation of goods by a vessel from the customs station of clearance in India to a place outside India.
Total Turnover:
“Turnover in State” or “turnover in Union territory” includes:-
* The aggregate value of all taxable supplies made
* The aggregate exempt supplies made
* The aggregate value of exports of goods or services or both
“Turnover in State” or “turnover in Union territory” excludes:
* The value of inward supplies on which tax is payable by a person on reverse charge basis
* Central tax, State tax, Union territory tax, integrated tax and cess;
*The amount of any duty or tax levied under entry 84 of List I of the Seventh Schedule to the Constitution and entry 51 and 54 of List II of the said Schedule; (i.e. duty and taxes paid on Non-GST supply)
Where value of exempt supplies and total turnover is not available, then values of exempt supplies and total turnover available in lase tax period shall be taken.