Rules Rule 27 of CGST Rules 2017 (Chapter IV) i.e. Value of Supply of Goods or Services where consideration is not wholly in Money with Amendments, Examples, Notifications and Circulars (Basic Valuation Rule)

Financial Year: 2017

Rule 27 of CGST Rules 2017

Value of supply of goods or services where the consideration is not wholly in money

 

Where the

supply of goods or services is for a consideration not wholly in money,

the value of the supply shall:-

 

(a) be the open market value of such supply;

 

Illustration: (1) Where a new phone is supplied for twenty thousand rupees along with the exchange of an old phone and if the price of the new phone without exchange is twenty four thousand rupees, the open market value of the new phone is twenty four thousand rupees.

 

(b) if the open market value is not available under clause (a),

be the sum total of consideration in money

and

any such further amount in money as is equivalent to the consideration not in money,

if such amount is known at the time of supply;

 

Illustration (2) Where a laptop is supplied for forty thousand rupees along with the barter of a printer that is manufactured by the recipient and the value of the printer known at the time of supply is four thousand rupees but the open market value of the laptop is not known, the value of the supply of the laptop is forty four thousand rupees.

 

(c) if the value of supply is

not determinable under clause (a) or clause (b),

be the value of supply of goods or services or both of like kind and quality;

 

(d) if the value is not determinable under clause (a) or clause (b) or clause (c),

be the sum total of consideration in money

and

such further amount in money that is equivalent to consideration not in money

as determined by the application of rule 30 or rule 31 in that order.

 

 

Thanks

CA Rahul Gupta