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
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\nDocument 1
\nChapter
\nDetermination of Value of Supply
\n1. Value of supply of goods or services where the consideration is not wholly in money
\nWhere the supply of goods or services is for a consideration not wholly in money, the value of the supply
\nshall,
\n(a)
\nbe the open market value of such supply;
\n(b)
\n(c)
\n(d)
\nIllustration:
\n(1)
\nif open market value is not available, be the sum total of consideration in money and any
\nsuch further amount in money as is equivalent to the consideration not in money if such
\namount is known at the time of supply;
\nif the value of supply is not determinable under clause (a) or clause (b), be the value of
\nsupply of goods or services or both of like kind and quality;
\nif value is not determinable under clause (a) or clause (b) or clause (c), be the sum total of
\nconside<\/p>\n
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\n(a)
\nbe the open market value of such supply;
\n(b)
\nif open market value is not available, be the value of supply of goods or services of like kind
\nand quality;
\n(c)
\nif value is not determinable under clause (a) or (b), be the value as determined by application of
\nrule 4 or rule 5, in that order:
\nProvided where the recipient is eligible for full input tax credit, the value declared in the invoice shall be
\ndeemed to be the open market value of goods or services.
\n3. Value of supply of goods made or received through an agent
\nThe value of supply of goods between the principal and his agent shall,-
\n(a)
\nbe the open market value of the goods being supplied, or at the option of the supplier, be
\nninety percent of the price charged for the supply of goods of like kind and quality by the
\nrecipient to his customer not being a related person, where the goods are intended for
\nfurther supply by the said recipient;
\nIllustration: Where a principal supplies groundnut to his agen<\/p>\n
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\nWhere the value of supply of goods or services or both cannot be determined under rules 1 to 4, the
\nsame shall be determined using reasonable means consistent with the principles and general provisions of
\nsection 15 and these rules:
\nProvided that in case of supply of services, the supplier may opt for this rule, disregarding rule 4.
\n6. Determination of value in respect of certain supplies
\n(1)
\nNotwithstanding anything contained in the Act or in these rules, the value in respect of supplies
\nspecified below shall be determined in the manner provided hereinafter.
\n(2) The value of supply of services in relation to purchase or sale of foreign currency, including money
\nchanging, shall be determined by the supplier of service in the following manner:-
\n(a) For a currency, when exchanged from, or to, Indian Rupees (INR), the value shall be equal to the
\ndifference in the buying rate or the selling rate, as the case may be, and the Reserve Bank of Indi<\/p>\n
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\nsubject to a minimum amount of two hundred and fifty rupees;
\n(ii) one thousand rupees and half of a per cent. of the gross amount of currency exchanged for an
\namount exceeding one lakh rupees and up to ten lakh rupees; and
\n(iii) five thousand rupees and one tenth of a per cent. of the gross amount of currency exchanged
\nfor an amount exceeding ten lakh rupees, subject to maximum amount of sixty thousand rupees.
\n(3) The value of supply of services in relation to booking of tickets for travel by air provided by an air
\ntravel agent, shall be deemed to be an amount calculated at the rate of five percent. of the basic fare in the
\ncase of domestic bookings, and at the rate of ten per cent. of the basic fare in the case of international
\nbookings of passage for travel by air.
\nExplanation – For the purposes of this sub-rule, the expression \u201cbasic fare\u201d means that part of the air fare
\non whi<\/p>\n
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\nno input tax credit has been availed on purchase of such goods, the value of supply shall be the difference
\nbetween the selling price and purchase price and where the value of such supply is negative it shall be
\nignored.
\n(6) The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is
\nredeemable against a supply of goods or services or both shall be equal to the money value of the goods or
\nservices or both redeemable against such token, voucher, coupon, or stamp.
\n(7) The value of taxable services provided by such class of service providers as may be notified by the
\nGovernment on the recommendations of the Council as referred to in Entry 2 of Schedule I between distinct
\npersons as referred to in section 25, other than those where input tax credit is not available under sub-section
\n(5) of section 17, shall be deemed to be NIL.
\n7. Value of su<\/p>\n
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\nin the invoice issued by the supplier to the recipient of service;
\n(vii) the supplier recovers from the recipient of supply only such amount as has been paid by him to the
\nthird party; and
\n(viii) the services procured by the supplier from the third party as a pure agent of the recipient of supply are
\nin addition to the supply he provides on his own account.
\nExplanation. – For the purposes of this rule, \u201cpure agent\u201d means a person who –
\n(a)
\nenters into a contractual agreement with the recipient of supply to act as his pure agent to incur
\nexpenditure or costs in the course of supply of goods or services or both;
\n(b) neither intends to hold nor holds any title to the goods or services or both so procured or provided
\nas pure agent of the recipient of supply;
\n(c)
\n(d)
\ndoes not use for his own interest such goods or services so procured; and
\nreceives only the actual <\/p>\n
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