Rule 32 of CGST Rules -Determination of value in respect of certain supplies

(updated as on 15.11.2017)

(1) Notwithstanding anythingcontained in the provisions of this Chapter, the value in respect of supplies specified below
shall, at the option of the supplier, be determined in the manner provided hereinafter.
(2) The value of supply of services in relation to the purchase or sale of foreign currency,including money changing, shall be determined by the supplier of services in the followingmanner, namely:-

(a) for a currency, when exchanged from, or to, Indian Rupees, the value shall beequal to the difference in the buying rate or the selling rate, as the case may be, andthe Reserve Bank of India reference rate for that currency at that time, multiplied bythe total units of currency:

Provided that in case where the Reserve Bank of India reference rate fora currency is not available, the value shall be one per cent. of the gross amount ofIndian Rupees provided or received by the person changing the money:

Provided further that in case where neither of the currencies exchangedis Indian Rupees, the value shall be equal to one per cent. of the lesser of the twoamounts the person changing the money would have received by converting any ofthe two currencies into Indian Rupee on that day at the reference rate provided by theReserve Bank of India.

Provided also that a person supplying the services may exercise theoption to ascertain the value in terms of clause (b) for a financial year and suchoption shall not be withdrawn during the remaining part of that financial year.

(b) at the option of the supplier of services, the value in relation to the supply offoreign currency, including money changing, shall be deemed to be-

(i) one per cent. of the gross amount of currency exchanged for an amount upto one lakh rupees, subject to a minimum amount of two hundred and fiftyrupees;

(ii) one thousand rupees and half of a per cent. of the gross amount ofcurrency exchanged for an amount exceeding one lakh rupees and up toten lakh rupees; and

(iii) five thousand and five hundred rupees and one tenth of a per cent. of thegross amount of currency exchanged for an amount exceeding ten lakhrupees, subject to a maximum amount of sixty thousand rupees.

(3) The value of the supply of services in relation to booking of tickets for travel by airprovided by an air travel agent shall be deemed to be an amount calculated at the rate of fivepercent. of the basic fare in the case of domestic bookings, and at the rate of ten per cent. ofthe basic fare in the case of international bookings of passage for travel by air.

Explanation.- For the purposes of this sub-rule, the expression basic fare means that partof the air fare on which commission is normally paid to the air travel agent by the airlines.

(4) The value of supply of services in relation to life insurance business shall be,-

(a) the gross premium charged from a policy holder reduced by the amount allocatedfor investment, or savings on behalf of the policy holder, if such an amount isintimated to the policy holder at the time of supply of service;

(b) in case of single premium annuity policies other than (a), ten per cent. of singlepremium charged from the policy holder; or

(c) in all other cases, twenty five per cent. of the premium charged from the policyholder in the first year and twelve and a half per cent. of the premium charged fromthe policy holder in subsequent years:

Provided that nothing contained in this sub-rule shall apply where the entirepremium paid by the policy holder is only towards the risk cover in life insurance.

(5) Where a taxable supply is provided by a person dealing in buying and selling of secondhand goods i.e., used goods as such or after such minor processing which does not changethe nature of the goods and where no input tax credit has been availed on the purchase ofsuch goods, the value of supply shall be the difference between the selling price and the
purchase price and where the value of such supply is negative, it shall be ignored:

Provided that the purchase value of goods repossessed from a defaulting borrower,who is not registered, for the purpose of recovery of a loan or debt shall be deemed to be thepurchase price of such goods by the defaulting borrower reduced by five percentage pointsfor every quarter or part thereof, between the date of purchase and the date of disposal by theperson making such repossession.

(6) The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp)which is redeemable against a supply of goods or services or both shall be equal to themoney value of the goods or services or both redeemable against such token, voucher,coupon, or stamp.
(7) The value of taxable services provided by such class of service providers as may benotified by the Government, on the recommendations of the Council, as referred to inparagraph 2 of Schedule I of the said Act between distinct persons as referred to in section25, where input tax credit is available, shall be deemed to be NIL.

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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