Krishna Ltd. has entered into an agreement with Sudama Ltd. showing INR 10 Cr as the agreement value. Krishna Ltd. has treated it as inclusive of tax and issued the tax invoice accordingly. Is this the correct view?
Here agreement value is the transaction value that is subject to tax and can not be treated as inclusive of tax.
Krishna Ltd. is liable to pay the tax on INR 10 Cr and it can not be treated as inclusive of GST.