Rule 28 CGST Rules 2017 : Value of supply of goods or services or both between distinct or related persons, other than through an agent

By | July 14, 2017
(Last Updated On: July 5, 2018)

Rule 28 CGST Rules 2017

Summary of Rule 28 CGST Rules 2017

( Rule 28 CGST Rules 2017 explains Value of supply of goods or services or both between distinct or related persons, other than through an agent and is covered in Chapter IV  – Determination of Value of Supply  : Inserted by the Central Goods and Services Tax (Second Amendment) Rules, 2017, w.e.f. 1-7-2017 )

Rule 28 CGST Rules 2017

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

28. The value of the supply of goods or services or both between distinct persons as specified in sub-sections (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;
(b)if the open market value is not available, be the value of supply of goods or services of like kind and quality;
(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 per cent 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.

[Note -1]


Note

1 refer Q 30 of GST FAQs on Financial Services Sector published by CBIC

 Rule 28 CGST Rules 2017

Also refer CBIC Website Click here 

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