Rule 28 of CGST Rules

 

 Value of supply of goods or services or both between distinct or related persons, other than through an agent

 

 

The value of the supply of goods or services or both

between distinct persons as specified in sub-section (4) and (5) of section 25

or where the supplier and recipient are related,

other than where the supply is made through an agent, shall-

 

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

 

For the purposes of the provisions of this Chapter, the expressions-

(a) open market value of a supply of goods or services or both means the full value in money,

excluding the integrated tax, central tax, State tax, Union territory tax and the cess

payable by a person in a transaction,

where the supplier and the recipient of the supply are not related

and the price is the sole consideration,

to obtain such supply at the same time when the supply being valued is made;

 

 

 

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

be the value of supply of goods or services of

 like kind and quality;

 

(b) supply of goods or services or both of like kind and quality

 

means any other supply of goods or services or both

made under similar circumstances

that, in respect of the 

characteristics, quality, quantity, functional components, materials, and the reputation of the goods or services or both first mentioned,

is the same as, or closely or substantially resembles,

that supply of goods or services or both.

 

 

 

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

be the value as determined by the application of rule 30 or rule 31, in that order

 

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 ninety percent 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.

 

 

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.

 

 

 

 

Thanks

CA Rahul Gupta

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