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

(updated as on 15.11.2017)

The value of the supply of goods or services or both betweendistinct persons as specified in sub-section (4) and (5) of section 25 or where the supplierand 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 orservices of like kind and quality;

(c) if the value is not determinable under clause (a) or (b), be the value as determinedby the application of rule 30 or rule 31, in that order:

Provided that where the goods are intended for further supply as such by therecipient, the value shall, at the option of the supplier, be an amount equivalent to ninetypercent of the price charged for the supply of goods of like kind and quality by the recipientto his customer not being a related person:
Provided further that where the recipient is eligible for full input tax credit, the valuedeclared in the invoice shall be deemed to be the open market value of the goods or services.

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

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• Download CGST Rules,2017 last updated as on 15th November,2017