GST Valuation - Inclusion of Other Taxes for Determining Value of Supply : Appraising European Court of Justice's Clarification in Indian Context

In its decision in the case of Lisboagás (C-256/14) the European Court of Justice (‘ECJ') adverted to the issue whether other taxes paid by the supplier and collected from the receiver on actual basis are required to be added to determine the taxable value for VAT purposes. The ECJ in this case concluded in the affirmative. The legal position in vogue in the Indian fiscal jurisprudence, in the context of sales tax/value added tax and service tax has largely been wavering. However the statutory provisions under the GST legislations are closely allied with those considered in the decision of the ECJ. This decision, therefore, provides vital insights on the likely interpretation accorded to the GST legislations on this aspect