Rule 29 of CGST Rules – Value of supply of goods made or received through an agent

(updated as on 15.11.2017)

The value of supply ofgoods between the principal and his agent shall-

(a) be the open market value of the goods being supplied, or at the option of thesupplier, be ninety percent. of the price charged for the supply of goods of like kind andquality by the recipient to his customer not being a related person, where the goods areintended for further supply by the said recipient.

Illustration: A principal supplies groundnut to his agent and the agent is supplyinggroundnuts of like kind and quality in subsequent supplies at a price of five thousand rupeesper quintal on the day of the supply. Another independent supplier is supplying groundnutsof like kind and quality to the said agent at the price of four thousand five hundred and fiftyrupees per quintal. The value of the supply made by the principal shall be four thousand five
hundred and fifty rupees per quintal or where he exercises the option, the value shall be 90per cent. of five thousand rupees i.e., four thousand five hundred rupees per quintal.

(b) where the value of a supply is not determinable under clause (a), the same shall bedetermined by the application of rule 30 or rule 31 in that order.

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