Valuation under Special cases – GST

valuation of goods and service


GST Valuation under Special cases 

About the Author:

Name: CA Monika N Rathi

Author is a Partner in M/s SSRPN & Co.( She can be contacted at   –




Determination of value in respect of few specific supplies Methods to determine Taxable value of following five specific supplies have also been prescribed under valuation Rules. These can be used by the supplier if he so desires.

(1) Booking of tickets for air travel by an air travel agent

(2) Purchase or sale of foreign currency including money changing

(3) Life insurance business

(4) Value of supply of Second hand goods

(5) Value of redeemable vouchers/Stamps/Coupons/tokens

The special provisions related to determination of these supplies are as below:

(1) Comprehensive Valuation in case of Air travel Agent (Rule32(3)).


Situation Value
Domestic travel 5% of basic fare
International travel 10% of basic fare


(2) Comprehensive Valuation in case of foreign currency including money changing:


General Rule:


Situation Value
Where RBI Reference rate is available Selling rate/Buying rate(-) RBI Reference rate *No of units
RBI Reference rate is unavailable 1% of Gross INR provided/received by supplier
Between non- INR currencies 1% of INR value of first currency OR1% of INR of second currency, whichever is lower.


Below option can be exercised for Whole FY if opted (Rule 32(2)(b))


Slab (Rs) Value
Upto1lakh 1% OR 250, whichever is higher.
More than 1 lakh and upto 10 lakh 1000+ 0.5% of amount exceeding 1 lakh
Above 10 lakh 60,000 OR 5500 + 0.1% of the amount exceeding  10 lakh, whichever is lower


(3) Comprehensive Valuation in case of Life Insurance business( Rule 32(4)).


Situation Value
Amount of investment/savings intimated to policy holder in advance Gross  premium charged (-)amount allocated for investment or savings
Single premium annuity policies other than above 10% of single premium
Others 25% of premium charged in the first year & 12.5% of premium charged in subsequent years
Entire premium paid by policy holder towards risk cover in life insurance Entire premium would be liable for GST as per other valuation Rule.


(4) Value of supply of Second hand goods

Situation Value
General rule – No ITC on purchases & loss to be ignored Selling price (-) Purchase price
Goods repossessed  from unregistered defaulting borrower Selling price (-) Purchase price of goods by defaulting borrower reduced by 5% for every full or part quarter between date of purchase & date of disposal


(5) Value of redeemable vouchers/Stamps/Coupons/tokens.

Value = Money value of the goods or services redeemable.

– CA Monika N Rathi

Disclaimer: Author of this write up intends to impart the knowledge of the amendment made by the Government regulatory and step taken to ease the compliance. Author is nowhere liable for any damage or indirectly and it is advisable to the viewers to consult their professional expertise to seek the advice.   

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