@csupdates ATLP REVISION Notes

GST-REVISION DAY-3 BY SALEEM QURAISHEE Page 1.
1
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DEC-2020
SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

GST-REVISION DAY-3 BY SALEEM QURAISHEE Page 1.2
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DAY-3
S.NO CHAPTER DAY
1) VALUATION 3

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1. VALUE OF TAXABLE SUPPLY- SECTION 15

 Value of Supply in common terms is nothing but the amount paid by the recipient of
supply to the supplier as consideration for supply (also known as transaction value).
 It means Value of supply is the figure upon which tax is levied and collected.
 It is important to know to ascertain correct value of supply for correct levy of GST.
 Valuation rules determine value of goods or services or both on which tax under GST has to be
charged. Valuation rules have been prescribed under CGST Rules, 2017 for the purpose of
determination of fair market value of goods or services or both supplied by the registered person.
1) TRANSACTION VALUE TO BE TAKEN AS ASSESSABLE VALUE [SECTION 15(1)]-The value of a supply of

goods or services or both shall be the transaction value,
I. Which is the price actually paid or payable for the said supply of goods or services or both
II. Where the supplier and the recipient of the supply are not related and
III. The price is the sole consideration for the supply.
2) AMOUNTS TO BE ADDED IN TRANSACTION VALUE [SECTION 15(2)]-The value of supply shall include
a) Any taxes-
I. duties,
II. cesses,
III. fees and charges levied under any law for the time being in force
other than
I. this Act,
II. the State Goods and Services Tax Act,
III. the Union Territory Goods and Services Tax Act and
IV. the Goods and Services Tax (Compensation to States) Act, if charged separately by the
supplier.
TCS under Income-Tax Act, 1961 not includible in the taxable value for the purpose of
GST:
b) Any amount that the supplier is liable to pay in relation to such supply but which has been incurred
by the recipient of the supply and not included in the price actually paid or payable for the goods
or services or both;
c) Incidental expenses, including commission and packing, charged by the supplier to the recipient of
a supply and any amount charged for anything done by the supplier in respect of the supply of
goods or services or both at the time of, or before delivery of goods or supply of services;
d) Interest or late fee or penalty for delayed payment of any consideration for any supply; and

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e) Subsidies directly linked to the price excluding subsidies provided by the Central Government and
State Governments.
Explanation––For the purposes of this sub-section, the amount of subsidy shall be included in the
value of supply of the supplier who receives the subsidy.
PROBLEM:1 Motor vehicle worth 20 lakh is sold by M/s Sundar Pvt. Ltd. to a customer in
retail market and for which 5 lakh has been paid in cash and balance amount by way of
cheque. Find the following:
a) TCS under section 206C of the Income Tax Act, 1961 is applicable in the given case?
b) who is required to collect TCS?
c) value TCS if any?
d) value of taxable supply under section 15 of CGST Act, 2017?
e) Invoice Price of M/s Sunder Pvt. Ltd.?
Note: Assume applicable TCS is @1% and GST 28%.
ANSWER:1
PROBLEM:2 Mr. Ram sold goods to Mr. Lakshman for 2,50,000. As per the contract of sale, Mr. Ram is
required to deliver the goods in the premises of Mr. Lakshman. Mr. Ram hires transporter for
transportation for delivery of goods. However, the freight paid by Mr. Lakshman to transporter. Freight
paid 2,500. Find the transaction value of supply of goods.
ANSWER:2 Particulars Value in
Value of supply of goods 2,50,000
Add: Freight paid by recipient of supply (which the supplier is so liable to pay) 2,500
Taxable value of supply of goods 2,52,500
PROBLEM:3 Mr. A is a seller of furniture. He supplied the furniture for 5,75,000 to Mr. B with the
condition that to remove old furniture from the premises of Mr. B by charging 5,000. Find the value
of taxable supply of goods in the hands of Mr. A.
ANSWER:3 The value of taxable supply of goods is 5,80,000.
PROBLEM:4 Bharat Gas sells cooking gas cylinders. Subsidy directly transferred to the account of the
customer. Selling price per cylinder is 800. Customer received subsidy 200 directly from
Government to his bank account. Net outflow of the buyer is 600. Find the value of supply of goods
(per cylinder) in the hands of Bharat Gas.
ANSWER:4 Since, the amount of subsidy is directly credited to the account holder and not received by
the Bharat Gas making the supply. Therefore, such subsidy will not be considered as part of transaction
value as it is not received by the Bharat Gas making the supply. Hence, transaction value is 800 per
cylinder.

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3) EXCLUSIONS FROM VALUE OF SUPPLY [SECTION 15(3)]-The value of the supply shall not include any
discount which is given––
a) Before or at the time of the supply if such discount has been duly recorded in the invoice issued
in respect of such supply; and
b) After the supply has been effected, if—
I. Such discount is established in terms of an agreement entered into at or before the time of
such supply and specifically linked to relevant invoices; and
II. Input tax credit as is attributable to the discount on the basis of document issued by the
supplier has been reversed by the recipient of the supply.
S. Nature of Treatment in GST

No. Discount
1 If the discount is given before or at the time of supply, and is Value of goods XXX
recorded in the invoice Less: Discount (XX)
Transaction value XXX
2 If the discount is given after supply, but agreed upon before Can be claimed as deduction
or at the time of supply, and can be specifically linked to from transaction value
relevant invoices.
3 If the discount is given after supply, and not known at the Cannot be claimed as
time of supply deduction from transaction
value
CASE-1 A purchases an Air conditioner from B for 20,000. B gives cash discount of 2,000 to A on
the sale invoice itself. Transaction value will be 18,000, being price of the goods after reducing the
discount offered at the time of sale.
CASE-2 A purchases an Air conditioner from B for 20,000 on July 1, 2019. On August 1, 2019, A
gives discount of 5,000 to B and B makes a payment of 15,000 to A.
 If discount is not known before or at time of supply, transaction value will be 20,000 being net
price of the goods plus discount allowed after the supply has been affected.
 If discount is known before or at the time of supply, transaction value will be 15,000 being net
price of the goods.
4) VALUE TO BE DETERMINED AS PER VALUATION RULES [SECTION 15(4)]-Where the value of the
supply of goods or services or both cannot be determined as per Section 15(1), the same shall be
determined in such manner as may be prescribed.
5) VALUE OF NOTIFIED SUPPLIES TO BE DETERMINED IN PRESCRIBED MANNER [SECTION 15(5)]-

Notwithstanding anything contained in Section 15(1) or Section 15(4), the value of such supplies as
may be notified by the Government on the recommendations of the Council shall be determined in
such manner as may be prescribed

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CASE-3 Contracted price for 1 MT of cement from X Ltd to Y: 7000. Advance payment before
dispatch: 700. Payable after credit period of 30 days: 6300. Base taxable value: 7000.
(Additions as further discussed below may also have to be made.) This would be so even though
only 700 has been received at the time of payment of GST on the supply.
CASE-4 Grand Biz contracts with ABC Co. to conduct a dealers’ meet. In furtherance of this, Grand
Biz contracts with vendors to deliver goods / services, like water, soft drinks, audio system,
projector, catering, flowers etc. at the venue on the stipulated dates at the stipulated prices. Grand
Biz is liable to make these payments as contracted. The soft drinks supplier wants payment upon
delivery; ABC Co. agrees to pay the bill raised by the soft drinks vendor on Grand Biz on receiving
the crates of soft drinks. This amount is not billed by Grand Biz to ABC Co. However, it would be
added to the value of service provided by Grand Biz to ABC Co. for payment of GST.
CASE-5 A supply priced at 2,000 is made, with a credit period of 1 month for payment. Thereafter
interest of 12% is charged. The payment is received after the lapse of two months from the date of
supply. The amount of 12% p.a. (i.e. 1% per month) on 2,000 for one month after the free credit
period is 20. Such interest will be added to the value and thus, the value of taxable supply will
work out to be 2,020.
CASE-6 The selling price of a notebook is 50. For notebooks sold to students in Government
schools, a company uses its CSR funds to pay the seller 30, so that the students pay only 20 per
notebook. The taxable value of the notebook will be 50, as this is a non-government subsidy. If
the same subsidy is paid by the Central Government or State Government, the taxable value of the
notebook would be 30.
CASE-7 Royal Biscuit Co. gives a discount of 30% on the list price to its distributors. Thus, for a
carton of Spice Bisk, in the invoice the list price is mentioned as 200,on which a discount of 30% is
given to arrive at the final price of 140. The taxable value is 140, as the discount is allowed at
the time of supply and shown in the invoice.
CASE-8 The agreement of Raju Electrical Appliances with its dealers is that sale of rice cookers over
100 pieces in the Diwali month will entitle them to discount of 5% per cooker sold in the next
month. The next month’s stock has already been dispatched when the sales figures for the Diwali
month are worked out. However, as the agreement was in existence at the time of supply, and the
discount can be worked out for each invoice, the taxable value will be billed price minus 5%. The
dealer must reverse the proportionate input tax credit on the relevant stock to bring it in line with
the reduced tax.
CASE-9 A company announces turnover discounts after reviewing dealer performance during the
year. The discounts are based on performance slabs and are given as cash-back. As these discounts
were not known at the time of supply of the goods, they will not be deducted from taxable value of
those
CASE-10 Bharat Gas sells cooking gas cylinders. Subsidy directly transferred to the account of the
customer. Selling price per cylinder is 800. Customer received subsidy 200 directly from
Government to his bank account. Net outflow of the buyer is 600. Find the value of supply of
goods (per cylinder) in the hands of Bharat Gas. -Since, the amount of subsidy is directly credited to
the account holder and not received by the Bharat Gas making the supply. Therefore, such subsidy
will not be considered as part of transaction value as it is not received by the Bharat Gas making the
supply. Hence, transaction value is 800 per cylinder.

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PROBLEM:5 Best Cars Ltd. sells a car worth 5,00,000 to Sundar Automobiles. Best Cars Ltd. incurred
packing charges of 6,000 on the car. Best Cars Ltd provided a discount of 1% on the car price, as part
of Diwali scheme. Best Cars Ltd agreed to provide a further discount of 0.5% if Sundar Automobiles
makes payment by 31st of the month via net banking. Sundar Automobiles makes the payment by 31st
of the month using net banking. Find the Net GST liability in the hands of Best Cars Ltd. Applicable rate
of GST 18%.
ANSWER:5
Particulars Value in
Value of the product 5,00,000
Add: packing charges 6,000
Sub-total 5,06,000
Less: Discount 1% on Rs 5 lakh (5,000)
Transaction value 5,01,000
Add: CGST 9% 45,090
Add: SGST 9% 45,090
Invoice price 5,91,180
Note: Since, the discount was known at the time of supply, and can be linked to this specific invoice, the
discount amount can be reduced from the transaction value.
For this, Best Cars Ltd will issue a credit note to Sundar Automobiles for 2,500 (0.5% of 5,00,000 =
2,500+ GST@ 18% on 2,500 = 450), and the same must be linked to the relevant tax invoice.
Discount given after supply but agreed upon before or at the time of supply and can be specifically linked
to relevant invoices, can be deducted from the transaction value.
PROBLEM:6 M/s Nambiar & Co., an Audit firm based in Cochin undertake an audit assignment of his
client based in Chennai. The Contract mentioned about the audit fees of 5,00,000 and arrangement
of taxi by the Client which may be worth 15,000. Find the transaction value on which M/s Nambiar
and Co., is liable to pay GST.
ANSWER:6 Transaction value in the hands of M/s Nambiar & Co., is 5,15,000.
Note: Not only audit fees but also the expenditure incurred in connection with the taxi 15,000
constitutes the sole consideration.
PROBLEM:7 M/s X Ltd. is engaged in doing job work for M/s Y Ltd. M/s Y Ltd. supplies raw material for
2,00,000 and packing material for 22,500 to M/s X Ltd. for completion of job work. M/s X Ltd. has
agreed to supply services for the purpose of performing the activities specified by M/s Y Ltd. for
1,00,000. Job worker profit of 70,000 and material consumed for 3,500. Find transaction value (i.e.
sole consideration) to levy GST in the hands of M/s XLtd.
ANSWER:7 Particulars Value in
Service charges 1,00,000
Add: Material consumed 3,500
Add: Job worker profit 70,000
Transaction value (i.e. taxable value of supply of service in the hands of M/s X Ltd.) 1,73,500
Note: “Although, it includes materials worth ` 3,500, still the entire supply including value of material
would be treated as services.

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PROBLEM:8 Mr. Bhanu makes supply of 2,00,000 to Mr. Renu. The contract provides that Mr. Renu will
pay 50,000 to Mr. Bhanu and 1,50,000 to Mr. Venu to settle the debt of Mr. Bhanu. Find the
transaction value and GST liability in the hands of Mr. Bhanu. Applicable rate of CGST and SGST 9%
each.
ANSWER:8 Statement showing transaction value and GST liability:
Payment from Renu to Bhanu 50,000
Payment from Renu to Venue for settling the debt of Bhanu 1, 50,000
Transaction value (i.e. Sole consideration) 2,00,000
CGST 9% 18,000
SGST 9% 18,000
Transaction value not available [Sec. 15(4) read with CGST Rules, 2017 (i.e. Determination of value of
supply)]:
PROBLEM:9 Mr. A goes to shop of Mr. B and purchases television. He pays amount of 50,000 as
consideration for 52 inches LED TV Purchased plus GST. Where MRP of the product 65,000. Discount
offered to all buyers 15,000. As per section 15(1) of the CGST Act, 2017 the valuation will be as per
transaction value basis. Assume applicable rate of CGST 14% and SGST 14%.
ANSWER:9 Invoice will be prepared as follows:
Invoice
Transaction value 50,000
Add; CGST 14% 7,000
Add: SGST 14% 7,000
Invoice price 64,000
Note: Invoice price should not increase the Maximum Retail Price (MRP)
If Mr. A not maintained sole consideration for such sale or they are related persons then valuation will
based on determination of value of supply rules (i.e. CGST Rules, 2017)
PROBLEM:10 R, a trader dealing in solar Cooker charged Rs. 30,000 for supplying of cooker to G. he has
received following subsidies:
Particulars Amount
(a) Subsidy directly linked to the supply and received from a Charitable Trust Rs. 10,000
engaged in promotion of solar cooker
(b) Subsidy from the Central Government as it also wants to promote solar Rs. 14,000
products in the country
Determine the value of supply of solar cooker.
ANSWER:10
PROBLEM:11 R, a trader has booked order of 200 pieces of Pants of different colors at Rs. 2,000 per piece.
He has agreed to allow discount of 20% at the time of supply of such goods. Determine the value of
supply.
ANSWER:11

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PROBLEM:12 R & Sons has agreed to supply refrigerator to G at his residence. R & Sons raises the invoice
for Rs. 50,000 for the said supply. G paid Rs. 50,000 to the supplier at his shop. Further, G paid Rs.
1,500 to concerned Tempo Agency who delivered the refrigerator at his residence, though it was
payable by R & Sons at the term of supply was free delivery at his residence. Determine the value of
supply.
ANSWER:12 Rs. 51,500.
PROBLEM:13 RG Pvt.Ltd. provides the following relating to goods sold by it to GK Pvt.Ltd

Particulars Amount
List price of the good (exclusive of taxes and discounts) 5,00,000
Tax levied by Municipal Authority on the sale of such goods 50,000
CGST and SGST chargeable on the goods 1,00,000
Packing charges (not included in price above) 10,000
RG Pvt. Ltd received Rs. 20,000 as a subsidy from a NGO on sale of such goods. The price of Rs. 5,00,000 of
the goods is after considering such subsidy. RG Ltd. Offers 2% discount on the list price of the goods which
is recorded in the invoice for the goods. Determine the taxable supply made by RG Pvt. Ltd.
ANSWER:13
PROBLEM:14 Determine the value of taxable supply as per section 15 of the CGST Act, 2017
Particulars Rs
Contracted sale price of goods (including CGST and SGST @5%) 10,56,000
The contracted sale price includes the following elements of cost:

(i) Drawings and design 5,000
(ii) Primary packing 2,000
(iii) Packing at buyer’s request 4,000
(iv) Fright and insurance from place of removal to buyers’ premises 43,000
A discount of Rs 6,000 of given by the supplier before the time of supply of goods. CGST and SGST is levied
@ 5%
ANSWER:14
PROBLEM:15 From the following information determine the value of taxable supply as per provisions of
section 15 of the CGST Act, 2017?
Particulars Rs
Contracted value of supply of goods (Including GST @ 18%) 11,00,000
The Contracted value of supply includes the following
1) Primary packing 25000
2) Protective packing at recipient’s request for safe transportation 15,000
3) Designing charges
85000
Other information:
1. Commission paid by recipient as per supplier’s request 5000
2. Freight and insurance charges borne by recipient on behalf of supplier 75,000
ANSWER:15

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PROBLEM:16 From the following information determine the value of taxable supply as per provisions of
section 15 of CGST Act, 2017?
Particulars Rs
Value of machine (inclusive GST @12%) 15,00,000
The invoice value including the following
1) Taxes (other than GST) charged separately by the supplier 15,000
2) Loading charges 25,000
3) Consultancy Charges for installation 10000
4) Testing Charges 2,000
5) Inspection Charges 4,500
Other information:
1) Subsidy received from central government for 51,000
setting up factory in backward region
2) Subsidy received from third party to recipient 50,000
3) Trade discount actually allowed shown separately in 24,000
invoice
ANSWER:16
PROBLEM:17 Black and White Pvt. Ltd. has provided the following particulars relating to goods sold by
it to Colorful Pvt. Ltd.
Particulars
List price of the goods (exclusive of taxes and discounts) 50,000
CGST and SGST chargeable on the goods 10,440
Black and White Pvt. Ltd. received 2000 as a subsidy from a NGO on sale of such goods. The price of
50,000 of the goods is after considering such subsidy. Black and White Ltd. offers 2% discount on the
list price of the goods which is recorded in the invoice for the goods. Determine the value of taxable
supply made by Black and White Pvt. Ltd
ANSWER:17
PROBLEM:18 XYZ Pvt. Ltd. has provided the following particulars relating to goods sold by it to ABC Pvt.
Ltd.
Particulars
List price of the goods (exclusive of taxes and discounts) 1,25,000
CGST and SGST chargeable on the goods 19,200
XYZ Pvt. Ltd. received 9,500 as a subsidy from a Non profit making organization in respect of timely
supply of such goods. The price of 1,25,000 of the goods is after considering such subsidy. XYZ Ltd. offers
4% discount on the list price of the goods which is recorded in the invoice for the goods. Determine the
value of taxable supply made by XYZ Pvt. Ltd.
ANSWER:18

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PROBLEM:19 Floral Advertisers conceptualized and designed the advertising campaign for a new product
launched by Jupiter Stampings Pvt. Ltd. for a consideration of 25,00,000. Floral Advertisers owed
4,50,000 to one of its vendors in relation to the advertising service provided by it to Jupiter Stampings
Pvt. Ltd. Such liability of Floral Advertisers was discharged by Jupiter Stampings Pvt. Ltd. Jupiter
Stampings Pvt. Ltd. delayed the payment of consideration and thus, paid 50,000 as interest. Assume
the rate of GST to be 18%. Determine the value of taxable supply made by Floral Advertisers
ANSWER:19
PROBLEM:20 Supreme Foods Pvt. Ltd. gets an order for supply of processed food from Hotelia Ltd..
Hotelia Ltd. wants the consignment tested for gluten or specified chemical residues. Supreme Foods
Pvt. Ltd. does the testing and charges a testing fee of 15,000 from the Hotelia Ltd.. Supreme Foods
Pvt. Ltd. argues that such testing fess should not form part of the consideration for the sale as it is a
separate activity. Is its argument correct in the light of Section 15?
ANSWER:20 Section 15(2) mandates the addition of certain elements to transaction value to arrive at
taxable value. Section 15(2) (c) specifies that amount charged for anything done by the supplier in
respect of the supply at the time of or before delivery of goods or supply of services shall be included in
taxable value. Since Supreme Foods Pvt. Ltd. does the testing before the delivery of goods, the charges
therefor will be included in the taxable value. Therefore, Supreme Foods Pvt. Ltd.'s argument is not
correct. The testing fee of 15,000 should be added to the price to arrive at taxable value of the
consignment.
PROBLEM:21 Vikash Charitable Institution makes a substantial donation each year to a reputed private
management institution to subsidize the education of low income group students who have gained
admission there. The fee for these individuals is reduced thereby, coming to 1 lakh a year compared
to T 4 lakh a year for other students. What would be the taxable value of the service of coaching and
instruction provided by the institution?
ANSWER:21 As per Section 15(2) (e), the value of a supply includes subsidies directly linked to the price,
excluding State Government and Central Government subsidies. In this case, the subsidy is not from
the Government but is from a charitable institution. Therefore, the subsidy is to be added back to the
price to arrive at the taxable value, which comes to 4 lakh a year.
PROBLEM:22 Floral advertising, an advertising firm, gives an interest-free credit period of 30 days for
payment by the customer. One of its customer paid for the supply 40 days after the supply of service.
Floral advertising waived the interest payable for delay of ten days. The Department wants to add
interest for ten days as per contract. Should notional interest be added to the taxable value?
ANSWER:22 This is a supply that is valued as per transaction value under Section 15(1) as the price is the
sole consideration for the supply and the supply is made to unrelated person. The concept of
transaction value has been expanded to include certain elements like interest which are actually
payable. Once waived, the interest is not payable and is therefore, not to be added to transaction
value.
PROBLEM:23 Leather Products Ltd. sells shoes its dealers, to whom it charges the list price minus
standard discount and pays GST accordingly. When such shoes remain unsold with the dealers, it offers
additional discounts on the stock as an incentive to push the sales. Can this additional discount be
reduced from the price at which the goods were sold and concomitant tax adjustments made?
ANSWER:23 The discounts were not known or agreed at the time of supply of goods to the dealers.
Therefore, such discounts cannot be reduced from the price on which tax had been paid in terms of
Section 15(3).

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POINT TO BE NOTED- SALES PROMOTION SCHEMES, OFFER DISCOUNTS, SAMPLES AND GIFT TO
DISTRIBUTOR ETC.CLARIFICATION ON VARIOUS DOUBTS CIRCULAR NO 92/11/2019-GST
A. FREE SAMPLES AND GIFTS:
I. Pharmaceutical companies which often provide drug samples to their stockists, dealers, medical
practitioners, etc. without charging any consideration.
II. Not regarded as supply : The goods or services or both which are supplied free of cost (without any
consideration) shall not be treated as 'supply' under GST (except in case of activities mentioned in
Schedule I of the said Act).
III. Section 17(5) (h) of the said Act provides that ITC shall not be available in respect of goods lost,
stolen, destroyed, written off or disposed of by way of gift or free samples.
B. BUY ONE GET ONE FREE OFFER:

I. Sometimes, companies announce offers like 'Buy One, Get One free' For example, 'buy one soap
and get one soap free' or 'Get one toothbrush free along with the purchase of toothpaste'.
II. Supply of two goods for the price of one : It may appear at first glance that in case of offers like 'Buy
One, Get One Free', one item is being 'supplied free of cost' without any consideration. In fact, it is
not an individual supply of free goods but a case of two or more individual supplies where a single
price is being charged for the entire supply. It can at best be treated as supplying two goods for the
price of one.
III. Taxability of such supply will be dependent upon as to whether the supply is a composite supply, or
a mixed supply and the rate of tax shall be determined as per the provisions of section 8 of the said
Act.
IV. It is also clarified that ITC shall be available to the supplier for the inputs, input services and capital
goods used in relation to supply of goods or services or both as part of such offers
C. DISCOUNTS INCLUDING 'BUY MORE, SAVE MORE' OFFERS:
I. Staggered discount: Sometimes, the supplier offers staggered discount to his customers (increase
in discount rate with increase in purchase volume- Get 10% discount for purchases above 5,000/-,
20% discount for purchases above 10,000/- and 30% discount for purchases above 20,000/ Such
discounts are shown on the invoice itself.
II. Periodic/ year ending discounts ie Volume discounts: Some suppliers also offer periodic/year
ending discounts to their stockists, etc.-Get additional discount of 1% if you purchase 10000 pieces
in a year, get additional discount of 2% if you purchase 15000 pieces in a year.
 Such discounts are established in terms of an agreement entered into at or before the time
of supply though not shown on the invoice as the actual quantum of such discounts gets
determined after the supply has been effected and generally at the year end.
 In commercial parlance, such discounts are colloquially referred to as "volume discounts".
Such discounts are passed on by the supplier through credit notes.
III. Staggered discount Volume discounts - deductible as per Section 15(3): It is clarified that discounts
offered by the suppliers to customers (including staggered discount under 'Buy more, save more'
scheme and post supply/volume discounts established before or at the time of supply) shall be
excluded to determine the value of supply provided they satisfy the parameters laid down in
Section 15(3) of the said Act, including the reversal of ITC by the recipient of the supply as is
attributable to the discount on the basis of document (s) issued by the supplier.
IV. Supplier entitled to avail ITC : It is further clarified that the supplier shall be entitled to avail the ITC
for such inputs, input services and capital goods used in relation to the supply of goods or services
or both on such discounts.

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D. SECONDARY DISCOUNTS:
I. These are the discounts which are not known at the time of supply or are offered after the supply is
already over. M/s. Anil supplies 10000 packets of biscuits to M/s. Bharat at 10/- per packet.
Afterwards M/s. A re-values it at 9/- per packet. Subsequently, M/s. A issues credit note to M/s. B
for 1/- per packet.
II. Secondary discounts not deductible : It is further clarified that such secondary discounts shall not
be excluded while determining the value of supply as such discounts are not known at the time of
supply and the conditions laid down in Section 15(3) (b) of the said Act are not satisfied.
III. In other words, value of supply shall not include any discount by way of issuance of credit note(s) as
explained above or by any other means, except in cases where the provisions contained in Section
15(3) (b) of the said Act are satisfied.
PROBLEM:24 M/s. Dental Care Ltd. has introduced a new product 'CLOVE' toothpaste. Determine the
GST payable if rate of tax is 18% on tooth paste and toothbrush:
I. 1,000 pieces having retail sale price (RSP) 70 per piece are sold in retail packages to wholesale
dealer at 50 per piece.
II. 2 ,500 pieces having RSP 70 per piece are sold in retail packages, but buyer is charged for 2,400
pieces only at 50 per piece (100 pieces have been given free as quantity discount).
III. 50 pieces were given away as free samples, without any RSP on the pack.
IV. 200 multi-packs were cleared at 90 per pack, each containing two toothpaste tubes and one
toothbrush free (without any RSP on it).
The amount charged from the dealers/buyers are exclusive of GST.
ANSWER:24 The GST payable is as computed below (amount in `)-
I. 1,000 pieces at transaction value of 50 per piece (Retail sale price is not relevant as value 50,000
for the purpose of calculating GST liability is the transaction value charged from the
buyers)
II. 2,400 pieces at transaction value of 50 per piece (Offering of extra quantity of the same 1,20,000
product is to be treated in the nature of discount. This discount or value of free article
/extra quantity of the same product which is known at the time of recognition of supply
shall not be included in the transaction value of supply so as to compute GST liability.)
III. Samples : 50 pieces are given free of cost [The goods or services or both which are
supplied free of cost (without any consideration) shall not be treated as 'supply' under GST
(except in case of activities mentioned in Schedule I of the said Act), hence no GST is
payable] -
IV. Multi-packs : 200 packs at transaction value of 90 per pack (It has been clarified vide 18,000
Circular No. 92/11/2019-GST, dated 07-03-2019, it is not an individual supply of free goods
but a case of two or more individual supplies where a single price is being charged for the
entire supply. It can at best be treated as supplying two goods for the price of one.
Taxability of such supply will be dependent upon as to whether the supply is a composite
supply or a mixed supply and the rate of tax shall be determined as per the provisions of
section 8 of the said Act. Since GST rate on tooth paste and tooth brush is 18%, hence 18%
rate will be applicable.)
Total Transaction value 1,88,000
GST payable @ 18% 33,840

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2. VALUATION RULES-

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RULE-27-Value of supply of goods or services where the consideration is not wholly in money. -Where
the supply of goods or services is for a consideration not wholly in money, the value of the supply shall, -
a) be the open market value of such supply.
b) if the open market value is not available under clause (a), be the sum total of consideration in money
and any such further amount in money as is equivalent to the consideration not in money, if such
amount is known at the time of supply;
c) if the value of supply is not determinable under clause (a) or clause (b), be the value of supply of
goods or services or both of like kind and quality.
d) if the value is not determinable under clause (a) or clause (b) or clause (c), be the sum total of
consideration in money and such further amount in money that is equivalent to consideration not in
money as determined by the application of rule 30 or rule 31 in that order.
CASE-11 Where a new phone is supplied for twenty thousand rupees along with the exchange of an
old phone and if the price of the new phone without exchange is twenty four thousand rupees, the
open market value of the new phone is twenty four thousand rupees.
CASE-12 Where a laptop is supplied for forty thousand rupees along with the barter of a printer that
is manufactured by the recipient and the value of the printer known at the time of supply is four
thousand rupees but the open market value of the laptop is not known, the value of the supply of
the laptop is forty four thousand rupees.
CASE-13 A company procures and modifies a machine and supplies it to its unrelated customer.
Since, it is a customized machine, the open market value of the machine is not available as also the
value of any other machine of the like kind and quality is also not available. Therefore, the value
should be worked out by adding the cost of modification to the cost of acquisition of the machine
and adding thereto 10% of the sum of these costs.
CASE-14 M/s X Ltd is a manufacturer of car and sells the car in the open market at a price of
11,00,000. M/s X Ltd provided the car to his company auditor is only for 9,00,000. In return
auditor provide auditing services to M/s X Ltd and charged 5,000 with the condition that
company will be provided the car at the price of 9,00,000.Find the value as per Rule 27(a),
Determination of value of supply. ----Open market value of the car is 11,00,000.
CASE-15 M/s X Ltd. is supplier of security services provided such services to M/s Y Ltd. As per the
contract M/s Y Ltd is to pay monthly 1,00,000. In the month of November M/s Y Ltd. supplied
uniforms to all employees of M/s X Ltd. by spending 20,000. As a result M/s X Ltd. raised the bill
for 80,000 in the month of November. In the given case M/s X Ltd. received consideration for
security service is partially in terms of money 80,000 and partially in kind(i.e uniforms). Find the
taxable value of service on which GST will be levied. ----- GST will be levied on the value of
1,00,000 80,000 + uniforms equal to monetary value of 20,000) in the hands of M/s X Ltd.
CASE-16 Guidelines Academy normally charge 10,000 for teaching the commerce students. A merit
student approaches the management of Guidelines Academy and narrates his financial position.
Guidelines Academy management considered his financial position agrees to charge only 5,000
from such student. Find the value of taxable supply of service.-----Since, Guidelines Academy has
not received any consideration from the student in any other form, 5,000 it self is a sole
consideration. GST will be levied on 5,000.
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PROBLEM:25 M/s. ATUL Ltd. is a manufacturer of sharbat. It sells sharbat in bottles to various retail
shopkeepers and gives 25 bottles free along with purchase of every 100 bottles. The MRP indicated on
each bottle is 200 per bottle. The transaction value is 160 per bottle. During a month, M/s. ATUL Ltd.
sold 1,00,000 bottles and gave away 25,000 bottles free to the retail shop-keepers. Compute the
amount of GST payable by M/s. ATUL Ltd. GST rate is 18%.
ANSWER:25 Offering of extra quantity of the same product is to be treated in the nature of discount.
This discount or value of free article/ extra quantity of the same product which is known at the time of
recognition of supply shall not be included in the transaction value of supply so as to compute GST
liability. Thus, no GST is required to be paid on the notional value of the extra units/quantity of the
product being offered as promotional tool as is in the nature of discount.
Accordingly, the computation of GST payable is as shown below (amounts in
No. of bottles on which GST payable (A) 1,00,000

Transaction value per bottle (B) 160
Total transaction value on which GST is payable (C) = (A) * (B) 1,60,00,000
GST liability @ 18% (D = C x 18%) 28,80,000
PROBLEM:26 Mr. X purchases an Apple i-phone open market value 80,000 from registered mobile
dealer, in exchange of his existing mobile phone. The registered mobile dealer agreed to accept
72,000 instead of his quote of 75,000, as he would still be in a profitable position (the old mobile
phone can be sold for 10,000). Determine GST implications of such transaction.
ANSWER:26 As per Rule 27 of CGST Rules, 2017, where the price is not the sole consideration for the
supply, the 'open market value' would be the value of the supply. Therefore, 80,000 would be the
value of the supply. As per Notification No. 10/2017-CT (Rate) dated 28-06-2017 w.e.f. 01-07-2017, the
Central Government has exempted intra-State supplies of second hand goods received by a registered
person, dealing in buying and selling of second hand goods and who pays the central tax on the value
of outward supply of such second hand goods as determined under Rule 32(5) of the CGST Rules, 2017,
from any supplier, who is not registered, from the whole of the central tax leviable thereon under
Section 9(4) of the CGST Act, 2017.Hence, the registered mobile dealer would not be liable for paying
GST on receipt of the old mobile phone from Mr. X.
PROBLEM:27 Mr. S supplied goods 'X' to Mr. R for consideration of 5,00,000 (excluding taxes). Mr. R also
gave some material to Mr. S as consideration for such supply whose value was 20,000 (excluding
taxes). Mr. S has supplied the same goods to another person at price of 5,71,200 (including GST @
12%). Determine the value of supply.
 What would your answer be if price of 5,71,200 is not available at the time of supply of goods
to Mr. R.
 What would your answer be in above case if open market value of supply is also not available
but at the time of supply of goods by Mr. S, identical goods have been supplied at value of
5,25,000 (excluding taxes).
ANSWER:27
PROBLEM:28 Compute the value of taxable supply and GST payable from the following information: ABC
Ltd. manufactured school bags. During the month of August 2019, XYZ Ltd. purchased 500 bags at the
contracted price of 1,000 per bag (excluding GST and discount) from ABC Ltd. XYZ Ltd. supplied chains
used in the manufacturing of the bags to ABC Ltd. without consideration as per instruction of ABC Ltd.
The open market value of the chains so supplied was 50 per chain. Also a discount of 20 per bag
was given by the supplier at the time of the supply and same has been duly recorded in the invoice
issued in respect of such supply. GST rate is 18%. Give reasons with suitable assumptions.
ANSWER:28

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PROBLEM:29 Sandeep & Co. provides technical consultancy to a group of companies for an annual
retainership fee of 25 lakh. It is given a room in the head office of the group for its exclusive use.
Somesh & Co. pays GST on the amount of 25 lakh. Is the value for the service provided by Somesh &
Co., correct under GST laws? If not, please elaborate:
ANSWER:29 The value of 25 lakhs for the service provided by Sandeep & Co., is not correct under GST
laws. Somesh & Co. gets an office room free of cost, which is an additional non-monetary consideration
for its services. The market value of the rent of the room must be added to the retainer fee ( 25 lakh)
in order to arrive at the value of the taxable service provided by Sandeep & Co, as per Rule 27 of the
CGST Rules relating to valuation.

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RULE-28 VALUE OF SUPPLY OF GOODS OR SERVICES OR BOTH BETWEEN DISTINCT OR RELATED
PERSONS, OTHER THAN THROUGH AN AGENT. -
The value of the supply of goods or services or both between distinct persons as specified in sub-section
(4) and (5) of section 25 or where the supplier and recipient are related, other than where the supply is
made through an agent, shall-
a) be the open market value of such supply.
b) if the open market value is not available, be the value of supply of goods or services of like kind
and quality.
c) if the value is not determinable under clause (a) or (b), be the value as determined by the
application of rule 30 or rule 31, in that order:
Provided that where the goods are intended for further supply as such by the recipient, the value
shall, at the option of the supplier, be an amount equivalent to ninety percent of the price charged
for the supply of goods of like kind and quality by the recipient to his customer not being a related
person:
Provided further that where the recipient is eligible for full input tax credit, the value declared in the
invoice shall be deemed to be the open market value of the goods or services
CASE-17 Mr. A and Mr. B are partners in the partnership firm A&B Co. Mr. A & Mr. B are related
persons. Thus, a transaction of supply between Mr. A & Mr. B in the course or furtherance of
business is treated as supply even if made without consideration.
CASE-18 Ms. Priya holds 30% shares of ABC Ltd. and 35% shares of XYZ Ltd. ABC Ltd. and XYZ Ltd. are
related. Q Ltd. has a deciding role in corporate policy, operations management and quality control
of R Ltd. It can be said that Q Ltd. controls R Ltd. Thus, Q Ltd. and R Ltd. are related.
CASE-19 Alpha Ltd. controls the composition of Board of directors of Beta Ltd. and Gama Ltd. It is
said to control both Beta Ltd. and Gama Ltd. Beta Ltd. and Gama Ltd. are related persons.
PROBLEM:30 M/s. Snowmakers an event management Co. for creation of large-scale events &
Occasions, owned by Mr. Shipu Kingdom of Dreams in Gurugram contracts with Snowmakers
Company to arrange a celebrity concerts charging Rs. 8,00, 000.The company sub-contract
the same work to Aura Mgt. Company which were also controlled and managed by Mr.
Shipu for Rs. 6,00,000. M/s. Aura Mgt Co. charges Rs. 6,20,000 from market for the same
work.
ANSWER:30 M/s Snowmakers and M/s. Aura Mgt. Company are managed and controlled by
Mr. Shipu so the both business will be considered as related persons. The value of service
will be the open Market Value being Rs. 6,20,000 rather than sub-contract price of Rs.
6,00,000.

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PROBLEM:31 Mr. X located in Jaipur purchases 2,000 drawing boxes for 2,00,000 from M/s. Stationers
Ltd. (wholesalers) located in Delhi. Mr. X's son is an employee in M/s. Stationers Ltd. The price of each
drawing box in the open market is 120. The supplier additionally charges 5,000 for delivering the
goods to the recipient's place of business.
ANSWER:31 Mr. X and M/s. Stationers Ltd. would not be treated as related persons merely because the
son of the recipient is an employee of the supplier, although such son and the supplier would be
treated as related persons. (As they fall under deemed relationship of employer and employee).
Therefore, the transaction value will be accepted as the value, of the supply. The transaction value
includes incidental expenses incurred by the supplier in respect of the supply up to the time of delivery
of goods to the recipient. This means, the transaction value will be: 2,00,000 + 5,000 i.e. 2,05,000.
PROBLEM:32 Jagatguru Textiles transfers stock of 15,000 metres of cloth (costing 15,00,000) requiring
further processing before sale, from Bellary in Karnataka to its Bhilwara branch in Rajasthan. The
Bhilwara branch, apart from processing its own goods, engages in processing of similar goods by other
persons who supply the same variety of goods, and thereafter sells these processed goods to
wholesalers. There are no other factories in the neighbouring area which are engaged in the same
business as that of its Rajasthan unit. Goods of the same kind and quality are supplied in lots of 15,000
metres each time, by another manufacturer located in Rajasthan. The price of such goods is
14,00,000.
ANSWER:32 As per Section 25(4) of the CGST Act, 2017, a person who has obtained more than one
registration, whether in one State or Union territory or more than one State or Union territory shall, in
respect of each such registration, be treated as distinct person for the purposes of this Act. As per
provisions of Section 7 read with Para 2 of Schedule I, transfer of goods between two registered units
of the same person (having the same PAN) will be treated as supply even if the transfer is made
without consideration, as such persons will be treated as 'distinct persons' under the GST law. The
value of the supply would be the open market value of such supply. If this value cannot be determined,
the value shall be the value of supply of goods of like kind and quality. In this case, although goods of
like kind and quality are available, the same may not be accepted as the Tike goods' since they are
supplied by another manufacturer located in Rajasthan whose transportation cost are lower and thus
less expensive in comparison to goods under consideration which were supplied from Karnataka.
Therefore, the value of the supply would be taken at 110% of the cost, i.e., 1650000 (i.e., 110% *
15,00,000).
PROBLEM:33 M/s. Solid Fabricators owned by Kalyan is popularly known for assembly of large machines.
M/ s. SS Fabricators (also owned by Kalyan) is engaged in fabrication of small machines. A factory
contracts M/s. Solid Fabricators for fabrication of its machinery, for a fee of 5,00,000. M/s. Solid
Fabricators sub-contracts the work to M/ s. SS Fabricators for 4,00,000 and ensures supervision of the
work performed by them. Generally, M/s. SS Fabricators charges a fixed sum of 1,200 per man hour
to its clients; it spends 400 hours on this project. Determine value of supply.
ANSWER:33 Since M/s. Solid Fabricators and M/s. SS Fabricators are controlled by Mr. Kalyan, the two
businesses will be treated as related persons. Therefore, 4,00,000 being the sub-contract price will
not be accepted as transaction value. The value of the service would be the open market value being `
480000 (i.e., 1,200 per hour x 400 hours).

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PROBLEM:34 GG Ltd. supplied printers from its establishment located in Maharashtra to its computer
manufacturing unit in Rajasthan @ 10,000 per unit. GG Ltd. supplied such printers during the same
period to independent recipient @ 14,160 in market (including CGST and SGST @ 18%). Determine
the value of supply for GG Ltd. in accordance with the CGST Act, 2017 and the rules made thereof.
respect of each such registration, be treated as distinct persons for the purposes of this Act. Hence, the
value of the supply would be the open market value of such supply.
In this case the open market value shall be arrived as under: (amount in
Price charged from independent recipient 14,160

Less: GST included in the above price [ 14,160 * 18 / 118] 2,160
Open market value of supply of goods under consideration 12,000
PROBLEM:35 SS Ltd. manufactures a customized product 'A' at its unit in Madhya Pradesh and supplies it
to its another establishment, located in Rajasthan. The Contracted sales price is 9,00,000. The cost of
production of Product 'A' is 10,00,000. SS Ltd. is the sole manufacturer of this product. Determine
taxable value of supply and calculate CGST and SGST payable @5%. Would your answer be different if
the establishment in Jaipur is eligible to avail Input tax credit of GST payable by SS Ltd.
respect of each such registration, be treated as distinct persons for the purposes of this Act. As SS Ltd.
is the sole manufacturer of this product, hence the value of supply is to be determined as per Rule
28(c) read with Rule 30 of CGST Rules, 2017 i.e. 110% of the Cost of production = 10,00,000 x 110% =
1100000. GST payable shall be 5% of 11,00,000 = 11,00,000 x 5% = 55,000.
In second situation, if establishment in Jaipur is eligible to take Input tax credit, then value declared in
invoice shall be taken to be open market value as per provisions of Rule 28 of CGST Rules, 2017. Hence,
value of taxable supply shall be ` 9,00,000 and GST payable shall be 5% of 9,00,000 = 9,00,000 x 5%
= 45,000.
PROBLEM:36 Grasim Private Ltd. was the only Indian company making and selling a fibre 'A' to companies,
who used this as a raw material. However, the international prices of 'A' dropped, and the companies
began to import it rather than buying from Grasim Private Ltd. The promoters then set up another
company, which had a manufacturing unit that could use 'A', with common directors and senior
management for better integration of functionality. Grasim Private Ltd. began to supply 'A' to this
related concern at low margins. The related concern was not eligible for full ITC. GST was paid on the
price charged. Was the value adopted by Grasim Private Ltd. for supply of 'A' to its related concern,
correct? Elaborate
ANSWER:36 The value adopted by Grasim Private Limited is not correct. As per provisions of Rule 28(3)
of the CGST Rules, 2017, the invoice value could not be the basis of valuation for a supply made to a
related person if the recipient is not eligible for full ITC. Under rule 28(a) of the CGST Rules relating to
valuation, the open market value of fibre 'A' should be the value of the taxable supply of 'A' to the
related concern. In this particular case, the open market value is likely to be the price of imported fibre
'A' plus customs duties, which should be adopted for valuation after excluding the component of IGST
on import as per the definition of open market value in explanation (a) to the CGST Rules relating to
valuation.

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RULE-29 VALUE OF SUPPLY OF GOODS MADE OR RECEIVED THROUGH AN AGENT. –THE VALUE OF
SUPPLY OF GOODS BETWEEN THE PRINCIPAL AND HIS AGENT SHALL-
a) Be the open market value of the goods being supplied, or at the option of the supplier, be
ninety per cent. of the price charged for the supply of goods of like kind and quality by the
recipient to his customer not being a related person, where the goods are intended for further
supply by the said recipient.
CASE-20 A principal supplies groundnut to his agent and the agent is supplying groundnuts of like
kind and quality in subsequent supplies at a price of five thousand rupees per quintal on the day of
the supply. Another independent supplier is supplying groundnuts of like kind and quality to the
said agent at the price of four thousand five hundred and fifty rupees 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 90 per 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 be determined
by the application of rule 30 or rule 31 in that order.
PROBLEM:37 Home Appliances Ltd. (Faridabad) has 15 agents located across the State of Haryana (except
Faridabad). The stock of vacuum cleaners is dispatched on Just-In-Time basis from Home Appliances
Ltd. to the locations of the agents, based on receipt of orders from various dealers, on a fortnightly
basis. Home Appliances Ltd. is also engaged in the wholesale supply of vacuum cleaners in Faridabad.
An agent places an order for dispatch of 20 vacuum cleaners on 10-12-2019. Home Appliances Ltd. had
sold 20 vacuum cleaners to a retailer in Faridabad on 8-12-2019 for 1,30,000. The agent effects the
sale of the 20 units to a dealer who would effect the sales on MRP basis (i.e., @ 7,000/unit).
ANSWER:37 The law deems these supplies between the principal and agent to be supplies for the
purpose of GST. Therefore, the transfer of goods by the principal (Home Appliances Ltd.) to its agent
for him to effect sales on behalf of the principal would be deemed to be a supply although made
without consideration. The value would be either the open market value, or 90% of the price charged
by the recipient of the intended supply to its customers, at the option of the supplier. Thus, the value
of the supply by Home Appliances Ltd. to its agent would be either 1,30,000, or 1,26,000 (i.e., 90% *
7,000 * 20), based on the option chosen by Home Appliances Ltd.

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RULE-30 ISSUE 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.
NOTE-Service providers have an option to directly move to rule 31 by passing rule 30.
PROBLEM:38 RAJ & CO. FURNISH THE FOLLOWING EXPENDITURE INCURRED BY THEM TO FIND THE
TRANSACTION VALUE FOR THE PURPOSE OF PAYING GST.
Particulars
(i) Direct material cost per unit inclusive of IGST at 18% 944
(ii) Direct wages 250
(iii) Other direct expenses 100
(iv) Indirect materials 75
(v) Factory overheads 200
(vi) Administrative overhead (25% relating to production capacity) 100
(vii) Selling and distribution expense 150
(viii) Quality control 25
(ix) Sale of scrap realized 20
(x) Actual profit margin 15%
Find the value for the purpose of payment of GST as per Rule 30 of the CGST Rules, 2017.
ANSWER:38 Statement showing value of supply of goods as per Rule 30 of the CGST Rules, 2017:
Direct material cost (944 x 100/118) 800
Direct wages 250
Other direct expenses 100
Indirect materials 75
Factory overheads 200
Administrative overhead (25% of Rs 100) 25
Quality control 25
Sub-total 1475
Less: Sale of scrap (20)

Cost of production 1,455
Add: 10% profit margin as per Rule 30 of the CGST Rules, 2017 145.50
Value of taxable supply of goods 1,600.50
Cost Accounting Standard (CAS)-4 issued by the Institute of Cost Accountants of India enumerates various
costs to be included in determining the cost of production of goods. CAS-4 principles are also applicable
for determining the cost of supply of service.
Thus cost of acquisition will include cost of transportation, any local taxes, insurance, other expenditure
like commission, fee and so on paid on procurement of goods.
However, GST element will not be considered for the purpose of determining the cost of acquisition.

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RULE-31-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.
CASE-21 A cosmetics company buys its products from a subcontractor, who supplies “testers” of
each product, to be placed in retail outlets, free of charge. These are of different size from the
product that is sold. The company and the sub-contractor are related persons. As none of the
methods in rules 27 to 30 will work for valuing these testers, the value will have to be determined
by using reasonable means consistent with the principles and general provisions of section 15 and
the Rules. A possible method may be pro rata reduction of the price based on difference in size
from the product that is sold.

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RULE-31A VALUE OF SUPPLY IN CASE OF LOTTERY, BETTING, GAMBLING AND HORSE RACING-
1) Notwithstanding anything contained in the provisions of this Chapter, the value in respect of supplies
specified below shall be determined in the manner provided hereinafter.
2) The value of supply of lottery shall be deemed to be 100/128 of the face value of ticket or of the price
as notified in the Official Gazette by the Organizing State, whichever is higher.
Explanation:- For the purposes of this sub-rule, the expression "Organizing State" has the same
meaning as assigned to it in clause (f) of sub-rule (1) of rule 2 of the Lotteries (Regulation) Rules,
2010.]
3) The value of supply of actionable claim in the form of chance to win in betting, gambling or horse
racing in a race club shall be 100% of the face value of the bet or the amount paid into the totalizator.

RMA
RULE-32 DETERMINATION OF VALUE IN RESPECT OF CERTAIN SUPPLIES. -
1) Notwithstanding anything contained 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.
This rule provides the valuation methods for five specific supplies which are as under —
a) Purchase or sale of foreign currency including money changing.
b) Booking of tickets for air travel by an air travel agent.
c) Life insurance business.
d) Supply of secondhand goods.
e) Redeemable vouchers/ stamps/ coupons/ tokens
 This rule overrides other rules of valuation. Thus, the supplies prescribed in this rule need not be
valued by sequentially following Rules 27 to 31.
 The valuation methods prescribed under this rule are optional; the supplier can use them if he so
desires. He can also opt to value his supplies in accordance with other valuation rules.
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 following manner, namely:
1. Special provision relating to determination of value of service of purchase or sale of foreign currency
including money changing [Sub-rule (2)]
The value of service in relation to purchase or sale of foreign currency, including money changing, is
determined by either of the two methods:
Method-1
a) Transaction where one of the currencies exchanged is Indian Rupees-
The value of supply is difference between buying rate or selling rate of currency and RBI reference
rate for that currency at the time of exchange multiplied by total units of foreign currency.
However, if RBI reference rate for a currency is not available then value of supply is 1% of the
gross amount of Indian Rupees provided/ received by the person changing the money.
CASE-22 On 10th May, Mr. Doshi converted USD $ 100 into 6,400 @ 64 per USD through Eastern
Money Changers. RBI reference rate on 10th May for US $ is 63 per US $. The value of supply in
this case is 63 – 64)* $ 100 = 100 and GST will be levied on this amount.
CASE-23 If the RBI reference rate is not available, then 1% of 6,400 i.e., 64 will be the value of
supply of service.
b) Transaction where neither of the currencies exchanged is Indian Rupees-

The value of supply is 1% of the lesser of the two amounts the person changing the money would
have received by converting (at RBI reference rate) any of the two currencies in Indian Rupees.

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CASE-24 US $ 9,000 are converted into UK £ 4,500. RBI reference rate at that time for US $ is 63 per
US dollar and for UK £ is 82 per UK Pound. In this case, neither of the currencies exchanged is
Indian Rupee. Hence, in the given case, value of taxable service would be 1% of the lower of the
following:-
US dollar converted into Indian rupees = $ 9,000 × 63 = 5,67,00
UK pound converted into Indian rupees =£ 4,500 × 82 = 3,69,000
Value of taxable service = 1% of 3,69,000 = 3,690
PROBLEM:39 R converted US$5000 from the authorized money changer @ Rs. 66 per US$ and received
Rs 3,30,000. RBI reference rate for US$ is RS. 66.50 for that day.
(a) Compute the value of service in relation to exchange of money.
(b) What will be your answer if RBI reference rate is not available?
ANSWER:39
PROBLEM:40 R converted INR60000 into Great Britain Pound ( GBP ) from the authorized money changer
and the exchange rate offered was Rs. 80, and therefore he received GBP 750. RBI reference rate for
that day for GBP is Rs. 79
(a) Compute the value of service in relation to exchange of money.
(b) What will be your answer if RBI reference rate is not available
ANSWER:40
Method-2- The person supplying the service may also exercise the following option (based on slab
rates) to ascertain the value of service, however, once opted he cannot withdraw it during the remaining
part of the financial year:
At the option of the supplier of services, the value in relation to the supply of foreign currency, including
money changing, shall be deemed to be
(i) one per cent of the gross amount of currency exchanged Up to 1,00,000:
for an amount up to one lakh rupees, subject to a minimum 1% of the gross amount of currency
amount of two hundred and fifty rupees; exchanged or Rs. 250 whichever is higher
(ii) one thousand rupees and half of a per cent of the gross Exceeding Rs. 1,00,000 and up to Rs.
amount of currency exchanged for an amount exceeding one 10,00,000:
lakh rupees and up to ten lakh rupees; And
Rs. 1,000 + 0.5 % of the gross amount of
currency exchanged
(iii) five thousand and five hundred rupees and one tenth Above Rs. 10,00,000:
of a per cent of the gross amount of currency exchanged for Rs. 5,500 + 0.1 % of the gross amount
an amount exceeding ten lakh rupees, subject to maximum of currency exchanged or Rs. 60,000
amount of sixty thousand rupees. whichever is lower
PROBLEM:41 Compute the value of supply of services as per Alternative 2 of rule 32(2):
1. Exchanged US$ 1000 and paid Rs. 66,000
2. Exchanged US$ 3000 and paid Rs. 1,98,000
3. Exchanged British $12000 and paid Rs. 10,80,000
ANSWER:41

RMA
PROBLEM:42 Determination of value of supply of services in relation to purchase or sale of foreign
currency - Rule 32(2) (a): M/s. Money Express Ltd., Jaipur is an authorised money changer registered
under FEMA, 1999. It enters into the following transactions of money changing:
(1) Sold 10,000 US $ @ 1 US $ = Rs. 71
(2) Purchased 1,000 Euro @ 1 Euro = Rs. 70
(3) Purchased 1,000 GBP @ 1 GBP = Rs. 99
(4) Sold 50,000 units of currency ABC @ 1 ABC = Rs. 15
(5) RBI reference rate for the various currencies at the relevant time :
1US$ = Rs. 70
1 Euro = Rs. 71
1 GBP = Rs. 100
(6) Sold 9680 US $ for 6,800 GBP
You are required to calculate value of taxable supply of service and tax thereon if all charges are
exclusive of GST. Applicable GST rate - 18%.
ANSWER:42
PROBLEM:43 M/s. MNO Ltd., Delhi is an authorised money changer registered under FEMA, 1999. It has
entered the following transaction of supply of money changing:
(1) 600 transactions of conversion of Dollar into Indian Rupees of Rs. 20,000 per transaction;
(2) 500 transactions of conversion of Dollar into Indian Rupees of Rs. 1 lakh per transaction;
(3) 200 transactions of conversion of Indian Rupee in Dollar of Rs. 5 lakhs per transaction;
(4) 100 transactions of conversion of Euro into Indian Rupee of Rs. 500 lakhs per transaction;
(5) 300 transactions of conversion of Dollar into Euro of Rs. 100 lakhs per transaction;
Compute the value of taxable supply and GST payable where M/s. MNO Ltd. opted for option under Rule
32(2) (b) of CGST Rules, 2017. Applicable GST rate -18%.
ANSWER:43

RMA
3) Special provision relating to determination of value of service of booking of tickets for air
travel by an air travel agent [Sub-rule (3)]
The value of the supply of services in relation to booking of tickets for travel by air provided by an air
travel agent shall be deemed to be an amount calculated at the rate of five per cent. of the basic fare
in the case of domestic bookings, and at the rate of ten per cent of the 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 part of the air
fare on which commission is normally paid to the air travel agent by the airlines.
PROBLEM:44 Mr. Prakash is an Air Travel Agent and provides the following information for the month
of October, 20XX.
Date Particulars Basic CommissionTotal Value

Fare
02/10/20XX Booked by Mr. Ram for Delhi to Chennai 3,000 500 6,000
10/10/20XX Booked by Mr. Sachin for Delhi to Bangkok 15,000 1,500 19,000
24/ 10/20XX Booked by Mr. Raj for Delhi to Mumbai 2,600 500 5,500
Compute value under various methods applicable for air travel agent.
ANSWER:44
PROBLEM:45 M/s. Airlines Associates has sold tickets for transport of passengers to Singapore, and other
foreign countries during the month of January 2018. The total amount charged is Rs. 30 lakhs on the
flight (100 tickets) of which 10 lakhs is towards passenger taxes Determine the Value of taxable
supply of services of M/s. Airlines Associates and tax thereon if applicable rate of GST is 18%. Amounts
are exclusive of tax.
ANSWER:45
PROBLEM:46 M/s. Kamal Associates has sold tickets for transport of passengers from various domestic
flights during the month of January 2018. The total amount charged is Rs. 90 lakhs on the flight (500
tickets) of which Rs. 10 lakhs is towards passenger taxes. Determine the value of taxable supply of
services and GST payable thereon if rate of GST is 18%. Amounts are exclusive of CGST and SGST.
ANSWER:46

RMA
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 allocated for
investment, or savings on behalf of the policy holder, if such an amount is intimated 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 single premium
charged from the policy holder; or
c) In all other cases, twenty five per cent. of the premium charged from the policy holder in the
first year and twelve and a half per cent. of the premium charged from the policy holder in
subsequent years:
Provided that nothing contained in this sub-rule shall apply where the entire premium paid by the policy
holder is only towards the risk cover in life insurance.
PROBLEM:47 Arihant Life Insurance Company Ltd. (ALICL) has charged gross premium of 180 lakh from
policy holders with respect to life insurance policies in the 2019-20 ; out of which 100 lakh have
been allocated for investment on behalf of the policy holders.
Compute the value of supply of life insurance services provided by ALICL:
I. If the amount allocated for investment has been intimated by ALICL to policy holders at the
time of supply of service.
II. if the amount allocated for investment has not been intimated by ALICL to policy holders at
the time of providing of service.
III. if the gross premium charged by ALICL from policy holders is only towards risk cover.
Note: ALICL has started its operations in the year 2019-20. Thus, the entire gross premium of 180 lakh
is the premium for the first year of all the policies. ALICL has not issued any single premium annuity
policy.
ANSWER:47

RMA
5) WHERE A TAXABLE SUPPLY IS PROVIDED BY A PERSON DEALING IN BUYING AND SELLING OF
SECOND HAND GOODS i.e., used goods as such or after such minor processing which does not
change the nature of the goods and where no input tax credit has been availed on the purchase of
such 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:
 Intra-State supplies of second-hand goods by an unregistered supplier to registered
second hand goods dealer exempt from CGST
 IF ITC AVAILED NORMAL VALUATION AS PER OTHER APPLICABLE PROVISIONS
CASE-25 A company X Ltd, which deals in buying and selling of second hand cars, purchases a second
hand Maruti Alto Car of March, 2014 make (Original price 5 lakh) for 3 lakh from an
unregistered person and sells the same after minor furbishing for 3,50,000. The supply of the car
to the company for 3 lakh shall be exempted, and the supply of the same by the company to its
customer for 3.5 lakhs shall be taxed. The value for GST purpose shall be 50000/ i.e., the
difference between the selling and the purchase price of the company. In case any other value is
added by way of repair, refurbishing, reconditioning etc., the same shall also be added to the value
of goods and be part of the margin.
PROBLEM:48 Mr. Rohan is engaged in buying and selling of second-hand cars in Jaipur. During the month
of December, 2017, he supplied a used car after some processing at Rs. 6,00,000 which he purchased
from customer at Rs. 5,40,000 and no input tax credit has been availed on such purchase. Compute the
value of taxable Supply. What would your answer be if purchase price of used car is Rs. 6,20,000.
ANSWER:48 As per Rule 32(5) of CGST Rules, 2017, where a taxable supply is provided by a person
dealing in buying and selling of second hand goods i.e. used goods as such or after such minor
processing which does not change the nature of the goods and where no input tax credit has been
availed on purchase of such goods, the value of supply shall be the difference between the selling price
and purchase price.
Computation of Value of Taxable Supply of Second hand Car (amount in Rs. ):
Sale price of Car 6,00,000

Purchase price of used Car 5,40,000
Value of Taxable Supply 60,000
(ii) In case (ii), as per Rule 32(5) of CGST Rules, the value of supply of second hand goods shall be the
difference between the selling price and purchase price and where the value of such supply is negative it
shall be ignored. Therefore, value of Taxable supply of Second hand Car = ? (6,00,000 - 6,20,000) i.e., Nil

RMA
 Purchase value of goods repossessed from Defaulting Borrower
If the defaulting borrower is un-registered If the defaulting borrower is registered
Purchase value = Purchase price in the hands The repossessing lender agency will discharge GST at
of such borrower reduced by 5% for every the supply value without any reduction from
quarter or part thereof, between the date of actual/notional purchase value
purchase and the date of disposal by the
person making such repossession
PROBLEM:49 Mr. X purchased a motor car on 1st October 2019 for Rs. 20,00,000. 80% of the purchase
price of car was financed by Easy Finance Ltd. The loan was payable in 60 monthly instalments
beginning with 01-11-2019. Mr. X defaulted in repayment of loan and Easy Finance Ltd. repossessed
the car on 15-05-2020. The car was disposed on 10-12-2020 for Rs. 15,50,000. Determine the value of
taxable supply as per Rule 32(5) of CGST Rules, 2017.
ANSWER:49 As per Rule 32(5) of CGST Rules, 2017, 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 the purchase price of such goods by the defaulting borrower reduced by 5% points for
every quarter or part thereof, between the date of purchase and the date of disposal by the person
making such repossession.
Computation of Value of Taxable Supply of Second hand Car (amount in Rs. ):
Sale price of Car 15,50,000

Purchase value of repossessed Car [WN] 15,00,000
Value of Taxable Supply 50,000
Working Note: Computation of purchase value of repossessed car (amount in Rs. ):
Purchase price of car 20,00,000
Date of purchase of car 01-10-2019
Date when repossessed car is sold 10-12-2020
No of quarters or part thereof 5
Percentage computed for the no. of quarters for which goods held prior to 25%
sale
Percentage computed for determining value of supply [100%-25%] 75%
Purchase value of repossessed Car 15,00,000
Note: As per Section 2(92) of the CGST Act, 2017, "quarter" shall mean a period comprising three
consecutive calendar months, ending on the last day of March, June, September and December of a
calendar year.

RMA
PROBLEM:50 M/s X Ltd, a registered person under GST, being a dealer dealing with second-hand goods.
M/s X Ltd. supplies a used camera to a consumer in Chennai for selling price of 15,000. The used
camera (i.e. second hand) was purchased for 10,000 from a registered dealer in Mumbai, on which
CGST + SGST of 1,400 each was charged (i.e. GST rate applicable to cameras is 28%).
M/s X Ltd. charged IGST 28% on inter State supply.
Find the net GST liability in the following independent cases:
a) if input tax credit availed.
b) if input tax credit not availed.
ANSWER:50
PROBLEM:51 Mr. C has taken a loan from the bank on 15th July 2017 worth 2 crore and purchased a
machine. Subsequently Mr. C defaulted in paying the loan amount along with interest. At late date
bank repossessed the machine from Mr. C on 1st Jan 2018. The banker sells the said goods on 26th
April 2018.
Find the value of taxable supply of goods in the hands of banker in the following two independent
cases:
Case 1: machine sold for 1,90,00,000.
Case 2: machine sold for 1,70,00,000.
Note: Applicable rate of IGST 18%.
ANSWER:51
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 the money value of the
goods or services or both redeemable against such token, voucher, coupon, or stamp.
PROBLEM:52 Mr. & Ms. Bhargava purchase 5 gift vouchers for Rs. 1,000 each from Raymond’s and give
them as return gifts to children and their parents on their son's birthday. Determine the value of
supply.
ANSWER:52 As per the provisions of Rule 32(6) of the CGST Rules, the value of supply would be the
money value of the goods redeemable against the voucher. Thus, in case of vouchers from Raymond’s,
the value would be Rs. 5,000 (i.e., 1,000 Rs.).
PROBLEM:53 Easy Coupons Ltd. sells coupons that are redeemable against specified cosmetic products at
retail outlets. Each coupon has a face value of Rs. 1,500 but is redeemable for supplies worth Rs. 1,750.
What is the value of supply of such coupon under GST laws?
ANSWER:53 As per provisions of Rule 32(6) of the CGST Rules relating to valuation, the value of a coupon
is the money value of the goods redeemable against it. Therefore, though the coupon is sold for 1,500,
its value is Rs. 1,750.

RMA
7) Value of supply of notified services between distinct persons [Rule 32(7)] : The value of taxable
services provided by such class of service providers as may be notified by the Government, on the
recommendations of the Council, as referred to in Paragraph 2 of Schedule I of the said Act between
distinct persons as referred to in Section 25, where input tax credit is available, shall be deemed to
be NIL.
RULE-32A-VALUE OF SUPPLY IN CASES WHERE KERALA FLOOD CESS IS APPLICABLE -The value of supply
of goods or services or both on which Kerala Flood Cess is levied under clause 14 of the Kerala Finance
Bill, 2019 shall be deemed to be the value determined in terms of section 15 of the Act, but shall not
include the said cess.
RULE-33 VALUE OF SUPPLY OF SERVICES IN CASE OF PURE AGENT. -

Notwithstanding anything contained in the provisions of this Chapter, the expenditure or costs incurred by
a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the
following conditions are satisfied, namely,
I. the supplier acts as a pure agent of the recipient of the supply, when he makes the payment to
the third party on authorization by such recipient; the payment made by the pure agent on
behalf of the recipient of supply has been separately indicated in the invoice issued by the pure
agent to the recipient of service; and
II. the supplies procured by the pure agent from the third party as a pure agent ofthe recipient of
supply are in addition to the services he supplies on his own account. Explanation.-For the
purposes of this rule, the expression “pure agent” means a personwho-
a) enters into a contractual agreement with the recipient of supply to act as his pure agent
to incur expenditure or costs in the course of supply of goods or services or both;
b) neither intends to hold nor holds any title to the goods or services or both so procured or
supplied as pure agent of the recipient of supply;
c) does not use for his own interest such goods or services so procured; and
d) receives only the actual amount incurred to procure such goods or services in addition to
the amount received for supply he provides on his own account.
CASE-26 A is an importer and B is a custom broker. A approaches B for customs clearance work in
respect of an import consignment. The clearance of import consignment and delivery of the
consignment to A would also require taking service of a transporter. So A, also authorizes B, to
incur expenditure on his behalf for procuring the services of a transporter and agrees to reimburse
B for the transportation cost at actual. Here, B is providing customs brokers service to A, which
would be on a principal to principal basis. The ancillary service of transportation, is procured by B
on behalf of A as a pure agent and expenses incurred by B on transportation should not form part
of value of customs broker service provided by B to A. This, in sum and substance is the relevance
of the pure agent concept in GST.
CASE-27 Corporate services firm A is engaged to handle the legal work pertaining to the
incorporation of Company B. Other than its service fees, A also recovers from B, registration fee
and approval fee for the name of the company paid to the Registrar Companies. The fees charged
by the Registrar of Companies for the registration and approval of the name are compulsorily levied
on B. A is merely acting as a pure agent in the payment of those fees. Therefore, A’s recovery of
such expenses is a disbursement and not part of the value of supply made by A to B.

RMA
CASE-28 Mr. Ram is a registered dealer under GST Law. He sold furniture to a customer for
51,000 with free delivery. In such case Mr. Ram availing the service of the transporter for his own
interest and therefore, transport charges is included in selling price of 51,000 and he would be
not considered as pure agent in this case
PROBLEM:54 Mr. X is a Customs Broker issues an invoice for reimbursement of a few expenses and for
consideration towards agency service rendered to an importer. The amounts charged by the
Customs Broker are as below
S. No. Component charges in invoice Amount in
1 Agency income 10,000

2 Travelling expenses 5,500
3 Hotel expenses 9,500
4 Customs duty 55,000
5 Dock dues 2,500
Find value of taxable supply of service in the hands of Customs Broker
ANSWER:54
RULE-34 RATE OF EXCHANGE OF CURRENCY, OTHER THAN INDIAN RUPEES, FOR DETERMINATION OF
VALUE. -
1) EXCHANGE RATE NOTIFIED BY CBIC APPLICABLE IN CASE OF GOODS : The rate of exchange for
determination of value of taxable goods shall be the applicable rate of exchange as notified by the
Board under Section 14 of the Customs Act, 1962 for the date of time of supply of such goods in
terms of Section 12 of the Act.
2) EXCHANGE RATE DETERMINED AS PER GAAP APPLICABLE IN CASE OF SERVICES : The rate of
exchange for determination of value of taxable services shall be the applicable rate of exchange
determined as per the generally accepted accounting principles for the date of time of supply of
such services in terms of Section 13 of the Act.

RMA
RULE-35VALUE OF SUPPLY INCLUSIVE OF INTEGRATED TAX, CENTRAL TAX, STATE TAX, UNION TERRITORY
TAX -Where the value of supply is inclusive of integrated tax or, as the case may be, central tax, State
tax, Union territory tax, the tax amount shall be determined in the following manner, namely, —
Value inclusive of taxes * tax rate in % of IGST or as the case may be
Tax CGST, SGST or UTGST
amount =
(100 + sum of tax rates, as applicable, in %)
Explanation. - For the purposes of the provisions of this Chapter, the expressions-
OPEN MARKET VALUE of a supply of goods or services or both means the full value in money, excluding
the integrated tax, central tax, State tax, Union territory tax and the cess payable by a person in a
transaction, where the supplier and the recipient of the supply are not related and the price is the sole
consideration, to obtain such supply at the same time when the supply being valued is made;
SUPPLY OF GOODS OR SERVICES OR BOTH OF LIKE KIND AND QUALITY means any other supply of goods
or services or both made under similar circumstances that, in respect of the characteristics, quality,
quantity, functional components, materials, and the reputation of the goods or services or both first
mentioned, is the same as, or closely or substantially resembles, that supply of goods or services or both.

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GST-REVISION DAY-3 BY SALEEM QURAISHEE Page 1.

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

1. VALUE OF TAXABLE SUPPLY- SECTION 15

1) TRANSACTION VALUE TO BE TAKEN AS ASSESSABLE VALUE [SECTION 15(1)]-The value of a supply of

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

S. Nature of Treatment in GST

5) VALUE OF NOTIFIED SUPPLIES TO BE DETERMINED IN PRESCRIBED MANNER [SECTION 15(5)]-

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

PROBLEM:13 RG Pvt.Ltd. provides the following relating to goods sold by it to GK Pvt.Ltd

The contracted sale price includes the following elements of cost:

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

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SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

B. BUY ONE GET ONE FREE OFFER:

C. DISCOUNTS INCLUDING 'BUY MORE, SAVE MORE' OFFERS:

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

Total Transaction value 1,88,000

GST payable @ 18% 33,840

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SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

No. of bottles on which GST payable (A) 1,00,000

GST liability @ 18% (D = C x 18%) 28,80,000

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SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

Price charged from independent recipient 14,160

Open market value of supply of goods under consideration 12,000

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

Less: Sale of scrap (20)

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b) Transaction where neither of the currencies exchanged is Indian Rupees-

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SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

Date Particulars Basic CommissionTotal Value

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SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

Sale price of Car 6,00,000

Value of Taxable Supply 60,000

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

Computation of Value of Taxable Supply of Second hand Car (amount in Rs. ):

Sale price of Car 15,50,000

Value of Taxable Supply 50,000

Working Note: Computation of purchase value of repossessed car (amount in Rs. ):

Purchase price of car 20,00,000

Date of purchase of car 01-10-2019

Date when repossessed car is sold 10-12-2020

No of quarters or part thereof 5

Percentage computed for determining value of supply [100%-25%] 75%

Purchase value of repossessed Car 15,00,000

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719

RULE-33 VALUE OF SUPPLY OF SERVICES IN CASE OF PURE AGENT. -

SALEEM QURAISHEE-9175664444 INSPIRE ACADEMY-8888881719