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


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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.

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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