GST: Cross Charges Considered at Zero Value if Previously Not Levied – Delhi HC

KEI Industries Limited Vs Union of India & Ors. (Delhi High Court) The Delhi High Court, in the case of KEI Industries Limited Vs Union of India & Ors., addressed the valuation of cross-charges between distinct entities under GST, specifically concerning expenses incurred by a Head Office (HO) but not cross-charged to Branch Offices (BOs). The core issue was whether Integrated Goods and Services Tax (IGST) was payable on such un-cross-charged expenses. The petitioner, KEI Industries Limited, challenged an Order-in-Original that had, without considering relevant circulars and precedents...