Value of supply of goods or services or both based on cost under GST

Summary of Rule 30 of GST Rule 2017:

Value of supply of goods or services or both based on cost:

Where the value of a supply of goods or services or both is not determinable by any of the preceding rules of this chapter,

Then the value of supply shall be 110% of the

cost of Production or manufacture or
cost of acquisition of such goods or
cost of provision of such services.

Example:

ABC Limited is manufacturing table and the cost of manufacturing is Rs. 5,000 per table.

However, in case if Open Market Value is not available, the value of supply as per cost method will be followed which says it has to be 110% of the cost of manufacturing i.e. Rs. 5,000*110% = Rs. 5,500.

Extract From GST Rules 2017:

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

Where the value of a supply of goods or services or both is not determinable by any of the preceding rules of this Chapter, the value shall be one hundred and ten percent of the cost of production or manufacture or the cost of acquisition of such goods or the cost of provision of such services.