Residual method for determination of value of supply of goods or services or both under GST


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Rule 31 of GST Rule 2017.Residual method for determination of value of supply of goods or services or both –

Where the value of supply of goods or services or both cannot be determined under rules 27 to 30, the same shall be determined using reasonable means consistent with the principles and the general provisions of section 15 and the provisions of this Chapter:

Provided that in the case of supply of services, the supplier may opt for this rule, ignoring rule 30.

Example:

One example of the residual method is valuation on the basis of per unit when the cost of manufacturing cannot be determined in principle. The number of man hours required to complete a job can be another example of such valuation method.

Valuation Rule of GST Act 2017:

1.   Rule 27 of GST Rule 2017 (Value of supply of goods or services where the consideration is not wholly in money

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

3.  Rule 29 of GST Rule 2017: Value of supply of goods made or received through an agent

4.  Rule 30 of GST Rule 2017: Value of supply of goods or services or both based on cost

5. Rule 31 of GST Rule 2017.Residual method for determination of value of supply of goods or services or both


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