GST – Determination of Value of Supply – Draft Rules 31-3-2017
GST
Dated:- 2-4-2017
GST -Determination of Value of Supply – Draft Rules 31-3-2017
=============
Document 1
Chapter
Determination of Value of Supply
1. 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;
(b)
(c)
(d)
Illustration:
(1)
if open market value is not available, 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;
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;
if value is not determinable under clause (a) or clause (b) or clause (c), be the sum total of
conside
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t, shall,-
(a)
be the open market value of such supply;
(b)
if open market value is not available, be the value of supply of goods or services of like kind
and quality;
(c)
if value is not determinable under clause (a) or (b), be the value as determined by application of
rule 4 or rule 5, in that order:
Provided 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 goods or services.
3. Value of supply of goods made or received through an agent
The value of supply of goods between the principal and his agent shall,-
(a)
be the open market value of the goods being supplied, or at the option of the supplier, be
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, where the goods are intended for
further supply by the said recipient;
Illustration: Where a principal supplies groundnut to his agen
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
pply of goods or services or both
Where the value of supply of goods or services or both cannot be determined under rules 1 to 4, the
same shall be determined using reasonable means consistent with the principles and general provisions of
section 15 and these rules:
Provided that in case of supply of services, the supplier may opt for this rule, disregarding rule 4.
6. Determination of value in respect of certain supplies
(1)
Notwithstanding anything contained in the Act or in these rules, the value in respect of supplies
specified below shall be determined in the manner provided hereinafter.
(2) The value of supply of services in relation to purchase or sale of foreign currency, including money
changing, shall be determined by the supplier of service in the following manner:-
(a) For a currency, when exchanged from, or to, Indian Rupees (INR), the value shall be equal to the
difference in the buying rate or the selling rate, as the case may be, and the Reserve Bank of Indi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ent. of the gross amount of currency exchanged for an amount up to one lakh rupees,
subject to a minimum amount of two hundred and fifty rupees;
(ii) one thousand rupees and half of a per cent. of the gross amount of currency exchanged for an
amount exceeding one lakh rupees and up to ten lakh rupees; and
(iii) five thousand rupees and one tenth of a per cent. of the gross amount of currency exchanged
for an amount exceeding ten lakh rupees, subject to maximum amount of sixty thousand rupees.
(3) The value of supply of services in relation to booking of tickets for travel by air provided by an air
travel agent, shall be deemed to be an amount calculated at the rate of five percent. of the basic fare in the
case of domestic bookings, and at the rate of ten per cent. of the basic fare in the case of international
bookings of passage for travel by air.
Explanation – For the purposes of this sub-rule, the expression “basic fare” means that part of the air fare
on whi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
d goods as such or after such minor processing which does not change the nature of the goods and where
no input tax credit has been availed on purchase of such goods, the value of supply shall be the difference
between the selling price and purchase price and where the value of such supply is negative it shall be
ignored.
(6) The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is
redeemable against a supply of goods or services or both shall be equal to the money value of the goods or
services or both redeemable against such token, voucher, coupon, or stamp.
(7) The value of taxable services provided by such class of service providers as may be notified by the
Government on the recommendations of the Council as referred to in Entry 2 of Schedule I between distinct
persons as referred to in section 25, other than those where input tax credit is not available under sub-section
(5) of section 17, shall be deemed to be NIL.
7. Value of su
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the payment made by the supplier on behalf of the recipient of supply has been separately indicated
in the invoice issued by the supplier to the recipient of service;
(vii) the supplier recovers from the recipient of supply only such amount as has been paid by him to the
third party; and
(viii) the services procured by the supplier from the third party as a pure agent of the recipient of supply are
in addition to the supply he provides on his own account.
Explanation. – For the purposes of this rule, “pure agent” means a person who –
(a)
enters into a contractual agreement with the recipient of supply to act as his pure agent to incur
expenditure or costs in the course of supply of goods or services or both;
(b) neither intends to hold nor holds any title to the goods or services or both so procured or provided
as pure agent of the recipient of supply;
(c)
(d)
does not use for his own interest such goods or services so procured; and
receives only the actual
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =