Replace “ point of taxation ” in Rule 8 of GST Valuation Rules – ICAI – GST Rules Issue 5

By | May 10, 2017
(Last Updated On: May 10, 2017)

 Rate of exchange of currency

Rule 8 of draft GST valuation Rules provides that the rate of exchange for determination of value of taxable goods or services or both shall be the applicable reference rate for that currency as determined by the Reserve Bank of India on the date when point of taxation arises in respect of such supply in terms of Section 12  or, as the case may be, Section 13 of the Act.

Issue

The rules make a reference to the ‘point of taxation’ and such the concept of Point of Taxation does not exist in GST.

Suggestion

It is suggested the words “point of taxation” be replaced with the words ‘time of supply’.

Source ICAI Suggestions on GST Rules Submitted to Govt of India

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