Rule 27 of CGST Rules - Value of supply of goods or services where the consideration is not wholly in money

Rule 27 of CGST Rules - Value of supply of goods or services where the consideration is not wholly in money

(updated as on 15.11.2017)

Where the supply of goods or services is for a consideration not wholly inmoney, the value of the supply shall,-

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

(b) if the open market value is not available under clause (a), be the sum total ofconsideration in money and any such further amount in money as is equivalent tothe consideration not in money, if such amount is known at the time of supply;

(c) if the value of supply is not determinable under clause (a) or clause (b), be thevalue of supply of goods or services or both of like kind and quality;

(d) if the value is not determinable under clause (a) or clause (b) or clause (c), be thesum total of consideration in money and such further amount in money that isequivalent to consideration not in money as determined by the application of rule30 or rule 31 in that order.

Illustration: (1) Where a new phone is supplied for twenty thousand rupees along with theexchange of an old phone and if the price of the new phone without exchange is twentyfour thousand rupees, the open market value of the new phone is twenty four thousandrupees. (2) Where a laptop is supplied for forty thousand rupees along with the barter of aprinter that is manufactured by the recipient and the value of the printer known at thetime of supply is four thousand rupees but the open market value of the laptop is notknown, the value of the supply of the laptop is forty four thousand rupees.

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CHAPTER IV

DETERMINATION OF VALUE OF SUPPLY

Chapter IV of CGST Rules, 2017 consists of nine rules relating toDETERMINATION OF VALUE OF SUPPLY rulesunder the GST regime. Both these rules are available for your ready reference. Rule 27 :Value of supply of goods or services where the consideration is not wholly in money Rule 28 :Value of supply of goods or services or both between distinct or related persons, other than through an agent Rule 29 :Value of supply of goods made or received through an agent Rule 30 :Value of supply of goods or services or both based on cost Rule 31 :Residual method for determination of value of supply of goods or services or both Rule 32 :Determination of value in respect of certain supplies Rule 33 :Value of supply of services in case of pure agent Rule 34 :Rate of exchange of currency, other than Indian rupees, for determination of value Rule 35 :Value of supply inclusive of integrated tax, central tax, State tax, Union territory tax