Value of material supplied for providing Taxable Services cannot be included in Value of Taxable services: CESTAT

The CESTAT has ruled that the value of material supplied for providing taxable services cannot be included in the value of taxable services under the Goods and Services Tax (GST) law. In this case, a company had included the cost of material provided to customers along with the service charges for calculating GST. The tribunal found that the cost of materials was a separate transaction and should not be considered part of the taxable service. This ruling clarifies that when calculating GST on services, the value of any goods supplied as part of the service should not be included in the service tax base. This distinction is important for accurate tax calculations and compliance with the GST law.