GST Valuation rules
Rule 27 of CGST Rules 2017: Value of supply where consideration not in money.
Value of supply of goods or services where the consideration is not wholly in money:
- Open market value of supply
- If open market value not available than total consideration.
- And If both open market value and total consideration not available than value of supply is like kind and quality.
- If all the value is not determinable by all of the above methods than rule 30 and rule 31 comes into play.
Rule 28 of CGST Rules 2017: Value of supply between distinct or related person, other than through agent.
- Open market value of supply
- If open market value not available than value of supply is like kind and quality.
- If all the value is not determinable by above two methods than rule 30 and rule 31 comes into play.
Provided that where the goods are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to 90 % of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person.
Note: Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services.
Rule 29 of CGST Rules 2017: Value of supply of goods made or received through an agent.
Value of Supply is the open market value of the goods being supplied, or at the option of the supplier, be 90% of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person, where the goods are intended for further supply by the said recipient.
Rule 30 of CGST Rules 2017: Value of supply based on cost
Where the value of a supply of goods or services or both is not determinable by any of the preceding rules, the value shall be 110% of the cost of production or manufacture or the cost of acquisition of such goods or the cost of provision of such services.
Rule 31 of CGST Rules 2017: Value of supply based on residual method
Where the value of supply of goods or services or both cannot be determined under rules 27 to 30. The same shall be determined using reasonable means consistent with the principles and the general provisions of section 15 of CGST Act 2017 and the provisions of this Chapter
Note: Provided that in the case of supply of services, the supplier may opt for this rule, ignoring rule 30.
