TAXMANN®

s
i e s e ed d .
s
s u a l hte e n n
-

b i o
7.2 METHODS OF CALCULATION OF VALUE OF TAXABLE SUPPLY (AN OVERVIEW)

a l
a d a t a v c o
b v e y gl e i
s
r f i
v a nre l 5 i
e o e p i
n e 1 v
h l s i ,
s b n o
t e s i mn l o r
o g i T o l
a i p
e a x ri
e h t e
t
n a S t s
i s c s
m t G e v e
s e
o e e , do T h
s c s S e t
r h d rr h f
n
o
e
p
t
, r op
f
G T o
s o y
r e .
r a w w mo h 5 w
VALUE OF SUPPLY

o s a sut t 1 e
i
m a l r
e i ,
n v
d T n t n r
e h
t aa o
i o
i e
t
i e S o ht. t t v
f n
i G cse s c c o
o m r n eel e
s e e
e e I mthu s h
r d .
s s
i r t )
u
l e
t n e esR h e 1
3
a e c heT t d s
i
v d U i
v t b r n g e
l
. r wci
r S e u n u
n s
i s
i e G p i R
o x s s os C s d w
d a a f ne A e o o
e t b o kdd . n
i l t
s n r ora n e m l
o 7
2
a e o t e g f
ad valorem
b h s tpt t r r
e e e
l
e d n c a t h y u )
b W o aaA
t h h
c e T
l
p R
2
3
y .
) o r c T f d . p ( e

7.1
a .
c g os S o s ”
y
u e
l l
u
m t f pi G s e l S b
e o mhC i c
i p f y a R
(
x ,
r s r i.T s
a v p o l
p c
i s
a
t e a e sd n b r u e p l
p d
t d h e i i e
s S u u p o
f
o e e t man e l
a S d a o
m l e h , e e
n l
a h opv e t s
d l
b
v f
o d t
o
G
/
o e c w cei s o a e
h u
l n s
i
t r
a s , ebg e
v o x t e
u c s e
a i y boe i g a s l n i c
i
n u t l
p ttr g T i a i ) v
i q i i sa 7 f
o f e V e 1 r
m s ,
) p ,i
e o u b (
5 e
,
r s u r x h 1 y l e o 1 S
r
e e m s otaic 0 l e a
V
h
t t d
t b f f h 2 p u t n e
e r
e o e h ,
t p l n n
i o o
i fi
d m t e r cw c u a o s n t i
t
e u u e i , A S V i
t n t c o
n y l hh s
i “ c o n e n

7.1 INTRODUCTION
h r a Tws T e f a i u s
t , a v .nl y S l
b o s s o n t
,
e h
t t
e s a s n u c e u
t g e i
s ona G x n a l
c s h o
u n h a C r n i b
t n o t ya f a
t o
i T I D W A
a e
l m f bpl o s
t , o r
i f i
s y n e pe 9 o v

ad valorem
l t uh o

CHAPTER
7 i g n s

Section 15(1)

Section 15(2)

Section 15(3)

Section 15(4)

Section 15(5)
a i
t d a st o i r
c n e t ad i s
a p
s
i a s n fn t e
f u s e o c b h
y q e c a e e t
n r r es S h s
a e p e ul
l e e t n
k
i x p na u h n i
n
I l
( e
( a ovr T o a
t
 n eg

services or both where the supplier and the recipient of the supply are not related and the price is
“The value of a supply of goods or services or both shall
be the transaction value, which is the price actually paid or payable for the said supply of goods or
o
i ui
l n
t
c a s
e vu
s ned
en
hi
vide
Notified Supplies Valuation

wm
t ,r
r
n c e
Section 15(5) of CGST

o A e t ]
Central Government
Supplies Notified by

i l ve )
CGST Rules, 2017

t i ed 2
As per Rule 32 of

a c T (
dn S ws s 5
nu G oi .
n
t
n 1 .
s
Valuation

e
Act, 2017

eo I Hu o e n e
mC o
t .a
e l i
t m o
i
c
i
mT e
l uv a e
l t
c v
r
oS l u E e
cG b
a
a
vt
e
h l S e
s
ef c e,
a n
i n /
r i
l l V a s
no p b s
n h
t
r
i
n d
O p ao t : e e o
a xt
aci i )
1 C v
i o
e
d t a w ( G g
a es n 5 [ e
X m hn
t o 1 h
sta i n t
A
T n
e i r t
a o .
y r
e ec l i
t l o

+
S u fi e p
E b l i r c p f
C g o a c e d

7.3 VALUE OF TAXABLE SUPPLY [SECTION 15(1)]

ve n s u
VALUE OF SUPPLY

I s i
It may be noted that
n ]
Supply NOT Satisfying

Section 15(4) of CGST

V i l ep i s e a
of CGST Rules, 2017

R y s a cs f l
As per Rules 27-31

f n g o e e b p
Basic Conditions

E s o e i n n y u a
S i
t i
t
v
a
o
vti
a i e s n h
t l
a y e
D a i h nr w n n o . V a b
Valuation

Act, 2017
N Sd t i e o o o i
t d r p o
A Ton c ec l m s
r a e o
f n r t
S OC A hr
t
l
o e c t
a
o
i o d
D Nc T ,fo f n
i p i
l l n t
c d e
O i S e e y d p e o
i a i
a e
ys
l G dd
h l e :
s p r t s p r
O a an l a t a n n g
General Valuation Mechanism

G p
pB C r a t o t
a e o r e a e a
: u r t
l15 s h l , c r n e h r c
i
I S e a n w e 7 n o d t T r s
T d mn i r 1 e f e i , P i
R n rio a
t
t
o r 0 r
. e s r s t
e
[ t
o a n a

the sole consideration for the supply ”

A u ot n n t 2 f n
P y nc o t
c n , n o t o m h
t
l e s
i e t i i n c
p
p
rs
a C n
i g c t t
i e e e e
n A A i r

=
e u l r s t t
s n d l c
r r s u
gd
e e o
i s
i n o a n p
i o a i
r
T

-
a e f en l t d a C t o c s s p
d o u a d S r c e e n

Sec. 15(1), 15(2) & 15(3)

t i
s r u r n h n o o o
n e fd R e e G r h o

Value of Supply
e n u o d e g o h
t p c
i d t i
t t

of CGST Act, 2017

i o l e T i u C s i s
Supply Satisfying
e m

Basic Conditions
p c. a . sn s w o d n s d r
i S a i

CGST Rules at a Glance

c ely vct e
s i7. n t r e M f i a e
e l p fA a m1 G o e h s l o e b e n f

Valuation
R o p o cr0 c b t a a ) h o r c o e
. su sT e2 C e y y b u 1 t e i c r
&ed es nS et , f r l l e d ( w i
l r o e
hr oG he
t des o e p p u i 5 e t p p l
ra
e
t t
s o i
s I feu l h p p l
a
s
e 1 r
a e p e w b
i
l l
e if i
v e o V W u u r u h t a
p r en oh tbR I S S V R n g a S T e y
pt co
i rt s
on
t
o T r o
i n e s a
uo r i
t pf
S e
t t i r e p
Sn Pa eo mn
p c w e h e

1.
2.
. . h0 ncaCG
a e
s o h t c
1 2 T2 I h l
l T f
I i
r o r

Rule 27
Rule 28
Rule 29
Rule 30
Rule 31
C e f p
p

1.

2.
e e e

(a)

(b)
7.2 h s h h
T A T T
TAXMANN®
 TAXMANN®
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7.3

[Circular No. 76/50/2018 GST, dated 31-12-2018 amended vide corrigendum

on
f a
p rm c
o uot
s
e n
i da n ne
ai n e ut
eao e t ar
l a a us o v a m )g
l d t e s c o l
e m l
c t i rel y n S n
b et ee g n t od l r Cvi
at e hd n rntr r ne
i i
a
l re p e Ta
yla l
b Te i
t e e o d e e p v (
ae a b o peb ee r i h u o h
pr i sl v sago y ur n l t s et
”

rts l nal Ae t l
l l
a g i p G co

Valuation Methodology for ascertainment of GST on TCS under Income-tax Act, 1961
ooi oh g o pre y r
dnr ss
r n .l
s d h vin r
e uo n e un
i ee e i
d nsoe w ee i
l sf a h
t oy
a
par i
l pon n oe m l
b s ]
1 p ee r sv
p ds a sh e e ae . p hb o y tle
ylyup eer t
s r e r xh 7 u t f b a
l
l p t t e td a aT e s yor n dim
a s a p u pse t l d er
uupe l
e , o lei y .
y p e bf o e t
t
c sth r n e a b e el m h do i
t d c e
aeh o
i h gnl l h hp t ee a i ent
eit eoa t t p a f r v l
“

ehc bn t l ,u x o gm e o l i
cti f th f
i e E r d r o n
i
r fh o fi o sas
e us f a i
t i p ca
pow t e e hr, n l e r l
a he s xs
tt dd r ; dte o a h e h ch n s ai
en n es ; o n ui
l nh s vt f e ,t o e
i t t
he
t u mhi s
e m o c t r
e nor e b g c d ,si
i
p et s s nero of R nat y i T
s
ici o ef s r
o
r
e i e p i [ n i s Sa
he m do e p othh e t e . o k y n b Gle
n % r c T cl a u
Meaning of Relevant Terms

cr a ee i d o sot h abl S s ap
Y i
h eny bu s 5 r l nf t s t pp f s rib
L t u ; 2 i ; a ao a G n o e

7.3.1 Inclusions in Transaction Value [Section 15(2)]

ha lr n f ny ] g d
P
P wt l
a i b ss s h o n , o aa t e du. 3 t n du
U edsy
cn . hv
sy
s e d
l
t
a s
r one d
e s r
t p p i
p ns7
e
n
e i
d
nl
uc
S i e l r in o ; e so
r b r e i
c ah e u n
’

F r audp sB e s h r y p i e fr c nt l m yi
pr p n. h u e b e f r t o o x e l l
O
ee lu
c o5 t
o b
r
o h
t d d poc s
i sd e r oop
i
y
a
c
x p t
E hilns s1
r n n s o e r
i tse s d s i i s e s tm p e po
U
L t p i e e n a i l
o e l
l h
t a
hn
s
e d n d
s
a a e h s
i nxa un
A opI th pio e rs r h o
t a n bp g t mioE d e sis
V t u . t ect n e t t r
t a ier , a y r y t e c
i f1
: ssy
r l f he o n ;
e n s n l
o ss n ell a b ma r y r o 6
7 e ep o Ts t e o l
o o r e uv o s ha h s oel e a p e9
f r c bb e l

[Refer Example 7.4]

. f h
t p t
n o o y r c t i s r
e t u c e cr f e e u1
H e ue t a o ,
s t y n . res o r nt d i e d l
Related Persons [Explanation to Section 15]:

C r es
r i n s p
r l
p n n l
t o
c
y
l c h e h
t oac n t
r ,
s n R h
t a ,
t
ee eip o o d w o
c c i s t w p o a a a i [ r vc
uh hc i t e m e y m e o e rn. de p r . o o fA

[Refer Example 7.2]

l t t c s e o y r l a rnh ec s he s f t

Definition of Family [Section 2(49)]:

a e a i t p i h bo o
vwrr n e n
r i d y
l
l
t d c
e
f d , t ,s s
s i e
e d
r
cli e
c y
t d nt
x
a
nesfo e a i
d g n t
c
c
e n r e ne e f s e r f i up i l e
oc h l
p o a e r i i m ot r
i o t r s p , h spv a k o-
i
i i n t x r c r r i r d i
a t a a n e s o s t ,ue
s r n n t e
t
c v oy e o e e i ; d o n
i s a i
c n n ep a t e o e s e i a m
art
e
i b y s r
r y d
nem n
i y
l r e n o o e
r
r
a d sn s
s t s es p l no
i
s s a
r d b e y
l o i r t o h as i
s d pai i o e e nhf d y c
nr
ao e e
r d c al l
p rh
ot
o c
e y t l s
f pae s l
i - s yt
l i C d eto n l
t mn
dr fi g l d i p y c rI
r
t /si e f m f y
l r
i t o xe c h nhe p
pd
,
s a xyp l a e. e
u nf e yo c s er c ebp t e
––
ednc o l e l t d n at e m e r )
hnon fii e re e t h c e e
r r eao d r ud i leu e i e e h
Taci e”
dn r r c
eot e
r r i
d
e h
b t oc n g n sa t
u s
t a n f d t
a
dt
f
s n o a a a r i
d a
h e a ,o fin d n t os e yt fo
dele ss
i s s s i
d b m y
e
m f l e s
t t o s ey. n d r t dS o .
ooe r n n n f wo , ee o a x
Transaction Value:

”e no m e h e o s n n ent s ml l i eCa
osb s
np
o o o e h t m ) s S -
, u ee ue e p ds
i s , s /
l s 6
ba

dated 7-3-2019]
ges s rs s os h t nr s l x yp c ld t o0t
od r r se r e (o n o r d au s ur
ftha se e e e r r t f e o a a a neo e p2o f

b
o h r p p p e a f o h r
a esr a p pen vm: t ps i go r st r
sh t ph o e s es n uon
yi e a h h h h t
e y sro p el y ye eing e ye r
l
p eic pel c c c ys e t g e uet m e ee he w n nh hh f t nC pi e
pich dr
e“
u u u nr
ao
n
o
o
b o h apu
l y
h
t hd
t t nlo A At Tt o n
I A( ect t
c
ur s s s t t e b l nai he
spw t
a e
b ) ) ) ) ) ) ) ) Cthri i ) ) et l
o t s a
r
eeu t l ( ( e,s t m ( hr f rra

(i)
(ii)

(iii)

(iv)
(v)
e ( (

viii
h)

i
ii
hthb r o a oe h

i
ii
iii
iv

v
vi
vii
t “ t ( ( ( ( ( T i Wces
(d F a Fdc

c
 .
0 r f yoeLds e e.e aisil
lofh
e o bsh ra h0l u 0 0 0 0 0 yh c

E.Q. 1. Surya Agencies has agreed to supply goods to customer’s premises. Goods valued, ` 80,000 are
taxable at 5% IGST as it is an inter-State supply. It also pays freight arid transit insurance of ` 12,000.

[Nov 2019, 4 Marks]

0h l L 0

GTA is a registered entity and has charged GST (6% CGST and 6% SGST) under forward charge.
i w u

(ii) What will be the Invoice value of supply including IGST, if the supply was under ex-factory
daTHt 0 0 0 0 0 at
2,33,500

0t
, % h c s,0a 0 0 0 5 0 hf e
2 o8 es. e v , , , , , ylus
( 1 hasyoh
r s
i d8e
i 0 6 7 2 8 ho da n
se che b t s 0 1 Cts i e
h , ibvh
Amount (`)

e tt
`

si
i b ntsen e s t 2 ef
yutl uIi
. td i
r n Bee
g , he et
u h ,
t d l
i ad
l e aee .r r Tnst
e
i m m n a se
,w e o .b

If this subsidy had been received from a non-government agency

r tit v yor oh f e i .
0
oes e c d e t e net h r
hx
t l
b umAb
diao
a
p
f
e rce
e n r i
h h ,
)e
o
f
0
0
,
u aa oLr ter poh cT2 0
aty r t c i a.5 (er 7
lnya pmh t
i t e h 0ct T 01h
a p n r T 0e . m0
oC edi . y 0 T e

`
paT
i ws e 0p
, l a, n
c sS es ms u 4 spp f4 on.
t b
i
n e naf o y i l nu
i o i
t n
uudG aMyat h a
v ete c e e
fdS

`
`

Mcle, rotp, 0
i
l l ) n . o nf l
a a m t
s n d
h
nnc oti
f a 2 o 0 eao s trr
yi e 0b
an5t
( i 0 t 0e rnee l
be n0i o 1 c ,
0 a 0lu oepv u
du. H g0l
i , i
t a4 r 5a f mso o
ele a 0 0 i s
d n , e, )n
s AG w
i
v
a
vas p40 0 dto
i n8 h2v
t e r. y
X
ee m ,ac a
r n xe0e l
A l tsi av0h p
`

c ay0i t
`

i.e. `

T h se a e d t o 0 t p
xt ca4h se ,

(i) Compute the Invoice value of supply including IGST.

S n arge fG6 m u
E ae
t e gp t r h0 t d o 6o s
v o fet0 a au em r
`

C
I eci nt
i s
i o p o khl f
hng 0 vo f o
Example 7.1 (Treatment of Municipal and other taxes)

s h t l f

`
V
Tsi e iadt nsd ,
0 o cc i
s ro d e
R
,h t
r oAe 4 Kgi n uf e
E .w
) t e hei n l s e u
l
S s vrsrg t .
d d fhi o c diciv a
e o n a dd o s xo re
`

D
xNi de art ea gal eo pc e v
as hei n
Example 7.3 (Treatment of incidental expenses)
N a 0 ni ( e
A t .
% 0 eti c
s
d
i mea
s b0
uer e 0ger h
S f8 0 her i i rwa 0hv T
Example 7.2 (Payment on behalf of supplier)

D o 12, t d nL o00 a ,s 0con e .

dvl o t B0 , ube u

basis instead of door delivery basis?

O e 4 lc a , e 6 a e
O v@ edi r s0 o00s 6se b l
G i
s se nAwe rit a 0
, t ,n f s a
thh8 l7p o h
`

: ui ga
i e fe t a v

`
l b r L f t a
LaCn
I sl s
c e t c x ) o l nh o n

Example 7.4 (Subsidy linked to price)

T xda i i

`
l dhHnfeo f s e 0 eait i
`
R eoh o i mel 5 csri t
A ( o dC ofpe ega : i e s

Value of Supply of 50 tons of chemical

t i r s × r ni c
P 0gs n0. a p
u
l
a c
e t ha t
n w pop l a a
s
0el y a0 h h r a Ch e o 0 eypl y n
0t
, hp d0tde g fcdo l
l 0 hd up r a
0
4nu p e,
z
0es e
ebt
e
hg
e
r o g i
c f
0
,
4 t i
s s p t
oS i 0t
, ir n sinn s db esu e
l
a 8 rgoya g nk i a eu h .
0
ef a a oc ( t sto f h
`

`
sl
i u dbe t ed l o 0t
b o t fpne a h a s y 0
`
sa p r b 0ptt e c uab e6, n
de e eoeei t e
i 5 i s
e e q i
og u
l cnhe l
t b m p
l
l
a
,
0 a
l m s
e g g
r sddu6e
e l d

As per Section 15(2)(iii),

or a nio ip d0 u e g r a a vse a
gaV ot nsL h e0 c r a h hei v t d

`
e a u s i , l h s
eh 0 . ca eh sy l 6 a C a h c sc a e a u
l
hce6h ser
w0mfp l
p
p1 c f h
c
c n e
s e p h n c
t Tt
fS. 5 r
e d
i t 0 o
s o
p u e o g
n o
i i
r
r nta i n
i
,7 st g psei n e

`
o , s
i s e 0s f
l u h b s t i t a e m
e
G c
t tnb,aa
r 0 s ig
h l
l
i
n h
g
n
i h c
e rh
e bdeb
S e od0 Mhf i o k g
c/ . e
vce8 , eo l e w t i c i p t sseri l
l

`
i ,e e r e e s n a d l
r
pST)T .
i dae obe
t Df y 0 r a W n Ese
hdi lw
S 0 Aorgr nu fd l 5 F P I i a w
fl p ar

`
tGG 0 yo l o e y y
s
i C 0 af ao t a p ypdel y d
l n2, r
t L n ec yv
t ngr u aribp
hes p
i
s
eea i Lee cer
i r e ua S t b t b
hhh 4 h ah rh hn o

(b)

(d)
r f

(a)
i un uu

(c)

(e)
7.4 TTt CHbp d pt Ac o CEs ss

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TAXMANN®
 TAXMANN®
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e c b
7.5

( ) Such discount is established in terms of an agreement entered into at or before the time
( ) before or at the time of the supply if such discount has been duly recorded in the invoice issued

( ) Input tax credit as is attributable to the discount on the basis of document issued by the
s e t d
a all n u d
)
0 ctrs
n t e u u s e
0
0
0
0
0
0
0
0
0
0 0 0
0
0
0
0
0 ten o l
c f u
f n o
Amount

Amount

0 0 0 6 6 o 0
, 0 0 0 emon d c x s
dyca
As per section 15(3) “The value of the supply shall not include any discount which is given:

,
0 ,
2 ,
2 ,
4 ,
6 x 2 ,
0 ,
4 ,
4 s
i e e s
i
1 nah e m

[Refer Examples 7.5 and 7.6]

8 1 9 9 a
T f 8 8 ept y d e i t
o pgn t
i , b t n
f en l
i y l e e
l
(i) Computation of Invoice value of supply including IGST in case of door delivery.

o % di e b l
i m
e 2 nd hsi p t h
t
t 1 i r w n . p s ) u
a
r = na oes u y e c
aeg ,
r pis s a r o
e
h
0
4 sr e s f m o d
t 4 i v
o e m o f
e f
, nne r e e t o
e
r 1 oio r s
’ r n b sy.
o i t o r p m u r i
( t s

of such supply and specifically linked to relevant invoices; and

f s s e s i o o l
`

e s e e M y ’
r t c ( a p
r
e e uut .ue e s t bp
c qqi i a
h i b m h eu

supplier has been reversed by the recipient of the supply.”

T v
r eet oeo t d : to hs
e hth hst t nd t e
(ii) Supply at the Ex-factory price instead of door delivery basis

.
s t ytu a n
d s
fflec / ele i nth
o A o o p e hl
t d of
o T p be r fi
l e to
Ge. G ) h allth o. ,u
d r n
(apti
ii
owo f ) ef t e d unt
Y nu
i
n tr e y t e n n oe
gnet
L l o r bl a
P tva a p c r e; cpi

7.3.2 Exclusion of Discount from Transaction Value

P n d
i prascs
e rp ea
f tse s
i
nd i

The analysis of above provision deciphers the following:

U ee a taoao e u f s n i d c
S mh p a d hs e n e e
F et
l T hpsu
t
r o
g t
i f so m w
-
er
he
O e n S t s e s e e o i i
t e t
E e lo G wrc i n
i h ee ydi e c h
U c a d e fin d t cu l ei
r ot
p o t
pn gv
L n pe f i ee g i y
0 i o v hgni o l
A a
r 0 c g
Aar n va uo an eb
l
sc ni
V nar C et
: u
s
0
, i
r h T h n a te nv
i g b
aed
7
n 2 pc I t i y h v e en at t
. I 9 m ndr g
i i
l eh hi ru u s
H
ht w eo

( ) after the supply has been effected, if

C f &be i oe u e e t ber
& o yl a ddSf r d t n ro dd i
t l l l
c eiy n ndi e l n e r
t v
h % y p i y s v e i i t l
o uk t e
r
g 5 l pw n l a obh, e f r a
i p ut a p ret r dd a f no n

in respect of such supply; and

e bp t e f e se
p sn c e p s c v eu di i
r vw
→

f ) u ee s u u i n nae dl ey, i sbe

t roahs rc

ANALYSIS OF SECTION 15(3)

r 1 s e m e
i l s r t o dl ge a
o N f l e c s a f e i
t on i p sb (
s f y
l o p l n d v o waue s t ci v tas
d s p W mle e o f smn s i a
h et op in i
o e p ( e g o o e nr i l
p r o ru ta d h
ps nc

Working Notes:
o u oa u w e)

[Refer Example 7.7]

g u % l cp a G % l ao t m, yn
sf ud r r
G r s a i a a efs i l
5 f 5 ile s o c e
Particulars

Particulars
f a f v ac y o v vnnto u n i o cn i
o h o @ e si
i n r y @ e oiai
e r r , da te s a xpl
e C e c tpr u l c bh t ,
y se n u di ap
t
u : u T i
o I S p T i
o at d r o i m ul y u
l l S v . . p S v e,n o n t( oa hp l ts
a a u t cv c u
Add
G n 1 2 G n hs ac e n s p pe
V V I I S I I Tuta
h
v
a ued i e uu nth
t h f
- h od d h Ss
t I
g x cu e

Note:
dei eil
l s
nr sw a b i
d l
c hm

a.

b.
af i x t o
fe
I ff
I r
a b

(1)

(2)
Ans.
 ed d ts. e
r h e t
he 0 0 e nno a c h
t I 0 0 0
aono d
-

t 0 0 u .
i 0 0 0
5,50,800

Amount (`)
)
y w 0 2 w snno s s y h 0 0 0
l oo , , o e a n b l , , ,
p t l
l 8 7 l
l a vc g o f e 0 1 5
Mentioned above

hi o
2 CONDITIONS

p d na 4
, 9 a e i d D 0
,
u e es 6 ygyh t
i e e , 1
INCLUDED

S l
l vi n neet d .
d
f i
f i
g t e abhft n m u t )
o l n e pll , o i
t s
s L e
u su
i b
mwi s e o i s n
i
e f c
`
`
`

u t %co s
a oto du e t c ) h
l
a o 0s h cn oal o h
t n i
t e c
N 2i 8 w e s v a
V d eugv ) a o
fd 1 t e m l m
The provisions relating to discount can be depicted by way of following diagram:

n o 0 n hofe P b
e Tcob r
After the Supply

I
( tth 2 a s l g o u j a e
n , e .d
s i y
l a n
i f c a e
c
h
t
ue y
r c t p x w e o r i
oc a i
o c sp
i a b d b r r
cn uh ut o o p o
f
s i u v dT se l
l r f h ) n .
i S r
b n
i o. fth o o o S e i e
c
d
e
d . rr f v d
)
y A0
.
0 0 e e paom e n s
i o
t o e i
o t
i
l
p .0
0
0
F h
t reyo
i y r h o
(
s
a e b
a
r
e v m
Mentioned above

Example 7.8 (Comprehensive problem on Section 15(1), (2)&(3))

h i
2 CONDITIONS

p r ,4, n e e e t b n d n L
e t r t i
NOT Included

u 4 2 i hh v
i f f a i e i
S d m 1 n t t l
e d i ey. h c
i
s
n e
h e
X e fg y o hpl c t
`

ofi s r
`

f l e o t a
A o l
i t
s oe d
e
w o ndc t l
p t t a p c v
T
e f
l
u ueu t o
h eifu
l r o p n
i d np m n ( n
i i
r
a u i e
dn oS
S u cicl s a u d n d P
E l F a d e u a n

Example 7.7 (Discount not known at the time of supply)

a ar s s d m e S te o d i e
C v e i e; i e h d e
I V ope dei d r s n t d n
DISCOUNT GIVEN

V t l c t nct e e e uth a ) c r i
Example 7.5 (Discount allowed at the time of supply)

Example 7.6 (Discount allowed at the time of supply)

R n a l i
o n aneb e l t l s u a o h
I 0n b u ht b n c of u t l c c
E
S
( 0i a v
n o nat a eoi co n: n c
n
m e a
0fa x i c omt o x s ay u i h r
D ,
5 et s s
i i
t ran
on a tv it
n n d r
g l
p
o
c t c (
e
M
N h i d o l t n o u a
A t
ett
e
h
` h s mrf
wil f ei ee
t cu
i
p s
i
d n s
f
n
i i
d
S ca, n a oeow o m n h i
p t
s s ( o h n
D ) i i 0 rrp nnt e e a t i a d e e c I
O y
l n r e e n 0 pe ku u ev oe c l h n n l a y
p i pvi c o l r t p c a i a m
O
p ne tri
r o i
t 8
, rl
oao to a g e
l r ssu h
c s b
G s 0 e e s e
CONDITION

u wc i v a f e c v ar e e e a n e
INCLUDED

:
S i l an m 5
, sd i
ns l
b i
l f x o h d
I
f
oo
hv hoi 5 r f e d e no a h
t p o a m t t a
T
R o sn t
i te r
o e e
l o r
e h
t at ty pct t e n f
o m
w,t h e ue f e
f rd ub h
Before or at the time of supply

A e ’i e c a w wh

`
P T cn n e e ee n b sp o t m e y
u
l Ohe si i i b dvi s t i e e i is e g n c l
p
a Nt do i g p l
l t
n
,
e d dk r d h
l e v n r i
r p
V ‘ ovn n r i de
uor e n n t
t e
s e r i
s i e p u
n f
I
onw
gio
i
w e w er
t rcoef d u i
l a r Dn u k
c v t s
I p y n e u y e ,si l a o s
i e
( dnh
i o
l 0 l i
o t s r l n l s
i v d c p G l l
l p f i c el l x b

Net Price (Taxes to be added)

o ds l
o 4 % p pa d e v a s e eai e i n
se s f 5 5 u pt T h n
i i c a r t
i t ( r
o h
l o a
x
std i e 1 s ane. e g fi ( n me e f e d a
a c uhs i te id n D e t

`
hlen h
t @ @ f
o
so
a
t
, e b sc
i i e L i d
e r f
) f a t c e c t e d g h m e o
y se
e d s
r n ey. hs coi o tp
n eb en
t i c s
u o f
f
l r y e ti a e
p s
i l d i
a u ul
l r d n
i v n us ra s a w s r
f o u
p ne r sp
piu
i h o a p a r.S n l od Ch vo
i m e s l

NOT Included
p v p l d

CONDITION
u i c c vu Mve i i cn x) r l
l e x i a
S no
c
i rhs
e c o
r f
s
i es ee w s a ar Po h o e
v % v
f i o D hf aodh i ef t B i 2 e
o wv
on
t
n h f
o
p t gnot t
n d y Ti
l e ne f e h
e hi Ewe s
a
s
e e ,o er mn hp tpl i h o d c
e @ t

Particulars
u Se ,m c d e e Mtuk i u u h t e e r e
l h mr h e a
r
s
a m cwn o: u cp p p cs
ae c t
a y
t
n n
a
V
ft
I aet i r i
p T cti eda
c e cd u nu i
r g d u i
hme e ncbo s e SS Is Mh p u i o m
n btoh d 0 se
i an-h
i
d fi ans
i r s c r
I a 0 h h h t r b e

Less:
( us t r t t i
l us s ets i s o u s
i t
t 2 i d r i

(a)

(b)
hu t 1 nat e oa e ha nfu L C S D e
7.6 Sca A I Rnc b Ts I D
TAXMANN®
 TAXMANN®
7.7

0 0 ) 0 - / d .
Vayu Ltd. offers 3% discount of the list price of the goods which is recorded in the invoice for the

[May 2018, Old, 5 Marks]

0 0 0 0 0 0 0 0 0 0 0 0 T t
`

1,01,000

99,000

0 0 0 0 0 0 0 0 0 0 8 n
Amount
Amount

0
, 0
, 0 0 0 0 4 0 0 0 0 0 2 S L i f
0 1 ,
2 ,
6 ,
5 ,
4 ,
4 ,
5 ,
6 ,
5 ,
4 ,
5 ,
2 Gty i e
l o
E . Q . Vayu Ltd. provides you the following particulars relating to goods supplied by it to Agni Ltd.:

0
, ( 7 1 7 Su n b s
1 g ,DA g i m
n T d
i S7.m u r
e
k l
c t
f s g c7. G1o n
o m n a1 C20r i n
i
Total

Value of taxable supply

s r i
r p0 n d f s e
e e ,2
y ac,
t i
m t d l , hA e y u
l
r n .
r i p t t r d a
e
t i e s
n pc rTv e o v
e m o uA e Sco b e
n u sT hG

Computation of value of taxable supplies by Vayu Ltd.

i l o c fS t t
n h
t
e a t r o o Cre e
u v s e tCG efe m
l e u t
f ] n co m o
a h c a 4 ee r b n r
v t e s - i o)o r f
e e h i e p
i h
t f (t e e
n m t v

a
t e c ) l

goods. Determine the value of taxable supplies made by Vayu Ltd.

i h
t o v o eof n2
i d o b
h r o N r (e G i
Computation of value of taxable supply

c n f t o [ g5 m t
a i e .
) d b e) n1u -.
n 7
c
u
m l s e . a % h)( i o1

c
d b t s n ] 3 t 2 e ns d
h e i
t n g d 2 o5( boa
i s n0 e
) c d c u r o e × t ect a,2 d
Y s
t u u u o a o v
i e
t r1 me n s
L n s l
c d c h g g o 0 e e mct i
P
u e s c 0 i n is
t e t
P f n i h 0 N 0 l o oA i
U o o i d d e c 0 [ , p
pci
t erb.
e rT
f ,
y
S c
s e t s b u 0
, s 6 ue hp sds l
i e l o i d o s 6 d 7 t a dS p
F d n a n t
i n t 7 o ss rsho o eG p

Particulars
O i ]
) s s , a r f
o o er oasg vC
i u

`
E d h n i y s e = he f ed e s
n c l f g t f

`
U (
) o t p e e o p wluo e co f
2 c

L a a t n p x m l
a f e ys aa oth e) o
A s m ( n e 0 u a o s e o ] c
i ba l vgf r
V e 5 e m 0 s T t c e 3 r yefo e)( e
x e 0 s e i de

e
: 1 m , f . r l e p el nh o c2 m7
7 a
t
h
t n n
r 0 o f u h e p a t t ga
u at e i
r ( i1
t
. o n e 0 e o c t c
i e s ] o s r ec
l p5 0
H f g r , f n n 2 i rna i e2
C o n
i
i
t
c e v
o
1 m e
v o o
o
v h
T o e
N
[ L a
he
v e
disp
r e1 ht
t ,
e k e v
o G i
t i
s t n ( t f ch e nt hn
t c
v s y ] y o O o nl o tA
i.e. `
i c s G e u e t i O 1 t st uboi s oci
t a
s a r e h l u i
r n i
r N G % e n i
d yel t nT
u
l p e i
h t
a e t c o i G e
t o [ N 3 s i du t dse
c r p l t c t x q h d N o h d ne el
i i
r h ef wS
x o s e S i a e
( e t e t e a = el v c ot ko oG
e f a D r
P n r u g a N u g pib enh n nC
( d m s e a r m s [ a r m d xd l i t i ns
i kf
s e e m t w d h a d g a o e eu .eu l
d s u
l o s
i o o t l h o o n l h r r l l c
t r a d yrm so
i
o u a o r
f L n o t a c r o i a c f e ac e a e l t)
o v r
f k] g a c f g k c f
f t n ld t
c e n
s d n s) o T d c o T d n i sTal
, u t (

a
g e e d e] e g l e e l e o ee e S c en u3)
e x h e v)
o i ( h n y S v h a y S v t dr i oc r
i i o(

3 a
h o t v i % t) t i G i t p G i n i t G l n d c5
t B i e ( 2 n ( k b e ) l b e u c a u I yi e s 1
n e c) u5 f S f a S c ns dT,b ylu i

2 e
f i c o1 o c d cy o i d o i t d n
o d e e e(
r @ cn a e d ed c e d e
r c gr
e
g ,S
s dno da
i o

Particulars
e l r 5 s e p i
v n r i
s e e i
v n s na e ed s v ei
e
c t
a b
i y y1 t
n i
d o c
i l e a yb c
i p e a y i i xGv i be ct
nc
i
r g d d dn
i u i
t r a
i l T du
i r S l T d
i D e h aTe n uh i e
p u u i s o o ec p c y s s p y s Bc TUl a St S s
r l s bti ce t e t S be t t S b

Notes:
c

Less:
t r c b ns s s . . . .

Add:
s o n u uc s
i i i p u G uh i u G u 1 2 3 4
i Sse S f L S D C St L D C S
Particulars
L C I
[ S [ D [ o


Solution

Less:
Add:

Add:

Ans.
2.
 ed.rs T ,e
s n y; f -.
be ole S mbl o ey o w3
tbfi e
7.4 DETERMINATION OF VALUE OF TAXABLE SUPPLY WHERE SECTION 15(1) IS

p G a d npl y ol
o i n rc
e e op l Hru
nron c C t i l mu p
nsc i i f ypl i
a p .y
e
ae t
a r o r p efs u vpl
v
7.4.2 Valuation Rule Where the Consideration is Not Wholly in Money [Rule 27]

cr r p a a a ho s op
sepen V t t f ba
do I e s n se o ay
e
cbs i i r ni e um e .
i nat e ole e l
p i e dtl
v y t mu b t u l ec
r
e aol
c u p -r s ye l
a b
i ne
s me a a n s a eh v s oir
v h ohi h nt a i
t d
rsl C nt t ot e e n
oaor i ma h f ed
/rse r ne
i , d t :
n t man
de
nnh ep e
d ypl e
r nwn ,
s e o
s n l c i e h n e0
ant a t
r m no s t s c3
satd u a x on u , i ne
dmoe n pxa a i k a s 0 el
o n n e t t
a l d 3 uu
oh is v re t
u r s
i c o
e qr
guc i m i or e t o h ) l ep
r g yo p dn t
e n u s i
fs e e l
l F n i u w o r fsk
X o nrct
i e o i s t m i f o
A
yi e r
a h7. e no s t i
T l dpd r om u e a , rto
S p s w2 e ca o v u d e
E pere
n o e
l sle h eh i o l
a e dn
C ui b i u w hc v b v s ro
I
V sm /l
l
u
r sr s t e a u oit
R e r di e t ,u r g d s nop
n e cf n p; e i
E
S ht
t e aw h s i
v o e
s :
7 wi
s
f ety n
i s ) 2
1
i
dn
feyu e t n r s s 2 hl s a d . ea
7.4.1 Valuation Principles in CGST Rules, 2017

D
o d t , o e n a o, t i u b o 7 s
N
ear l y s s o s e
l nn a t h uas
A eb a l
p :
s r rsi s u kio ru y s t a
ul p v y e oi e tt e b o e r eh
S
D l lde ple e p /v n R ; o a dq e C m a
P br
O a a h uu n d do i
s r y ner nd l ( e
O vh et sr o e nr u e l
p sd un b d t n ol
t i
t a n
G
:
esa
hee l n
e
fd
o e
m t
a ap
sh
b d
n p
u
i
ysi da n e
i e i
d epp
I t h t n l
e dt f u l n ed i
a l
p m e r u
NOT APPLICABLE [SECTION 15(4)]

m r ea i o s p nin a
T ea t uel r oi l n h pco i t
r p g n 7es
R
A r
e sas , l
a r
y
l
l r ow a w c uy mk e a d i
a 2h
P hehe ve o o t ge s u se rke c e u l
c t n t fc o o s e s J p e,t
wht
t iiv . fh h c e s o n p d f
en
ho t i
l a b t x l
u s
t), w r 7 o t w n g o ya s
i d o t e f t o s e rce
a 1ss e 1 e t i
t A c l d d i do o t e n
h( i 0 nr o s n p r a e fm
o es n s B e nvi
t 5 2 oa
i n i n o . po n r l u - be i ( e i r
s1no r, t d a d uc o e l eon s
i 0 1 de

When Rule 27 is applicable:

o s a g s n d sc o
i r r a un tic 3 3 b es
e o

Methodology of Valuation:
nti /e nin i e h e aa n t e a v l o v e e df
do
i c dl i n e g s h o c f s t a nr u e
l e v i o
v i
t a nu mow o u a t
e rn: i a s e vhe ne l
a u l a v
aR i w o oi s t s n d u oly

Sequential application:
ocs rll t t r b M f e c n a o k tt as v R R h rp
ren sT e a e n ds a a r h r e
kf cor ) pp
psa
r dS t
e o
f r b h
t o l ne
ou a s r t t a
ro
e
h T N 1
)e r oG e i a i c n t tts e m a e/ t S 3 yu
4 t oC de d y y
l t u t l a e n m t ud R E / gs
( p eg eh i
s l
p p a d a a g r g ese n men l
a n f
i H 0 of
5 sh hT n p p u i
s r vin t n ns g e l va , I T 3 l o
1a tfi n t o l
a e e sw r aa n p na y F ( o
ndfod .
7 u u di e a i o ev eds l
l s de
oei y s1 C S S V R i
s ylo t h mh w pui ho a e oas
l d0 nlo r c rc e oq t l hc

u
i
t nsp e r2 : l a x o h n u
c i n b a opf e u l fe fgo i r t
e

Rule 27 :

Rule 29 :
Rule 30 :
Rule 31 :
emapr i gs, cpe B E Ps l
o T I I F n

Rule 28
s reus c ee euh f ) ) ) ) e m,i
eeme
t
s
e r l hst e (
s
e eer

u
he su t e h ( ( ( h hv

a
b

d
7.8 TdI tthpr AR fthn T T Te
I i
TAXMANN®
 TAXMANN®
eew fofny d t en,o rls , ohi tel
7.9

hne o epl n a
h ho t oaa
n t snd
t on repp a t t i ,
n so e ieuo
t
hhe )
y
e
t uou n gto
c e i n h
t
i p h n l r l
a e s d
n n i na
i i
t
cc
i t m uaCm
o p a o 1 s v a CMAa
Manner in which Value of supply will be determined

wwt i p bevhe i i d n a r ns r
f t t h k t 3 ua r e ue Ar. ,
e l
geo a u eh tt e a l rde s fh c i
nne r
e s ht u f k r
e
e
l c
xts i r,t
y dMn m
oeu
l l d f
o t dbo i
l d Ru ean oit s e,i
z n S
i
s
: a ha
t i
s hn
t 0e i
s , o
n st i i
l o . e
r e a0l u f y dnd ,
“

e v n i 0 o n r eic a i
t S h
n 0ft o m wt, a o o non oae r c A T
0oe t

Meaning of “Supply of goods or services or both of like Kind and Quality”

c i
t gen4v s c 0 os e
l oun n a.e .
n 0ek
, y y e npi e e
c. y y 3 o gqo esd
a e 0icar r h i r mr s f,t i cnnb l

Meaning of “Open Market Value” as per Explanation (a) to Rule 35

e h oi e
`

m u 2r n a t l st
i v d n a e ee o y
t n a I
l pm t a c , r e t l nph yli dr a
l
Example 7.10 (Given in CGST Rules, 2017)

a o e t eyn e s o e u i l e et oi
g l eas t am
Example 7.9 (Given in CGST Rules, 2017)

v en m n a 0r p s u m n R p z stv a
`

n t rh o n 0 e w re o f uyi put i i n
i
i e ot e n 0h p o ob n l be uqs mth a
w k f p i m w ,
0 t u n /l i m o a ss, r . oo m t
o r
a difo n -
n o 4yf s k dl n - n
n
vleic ri h
c fit t t e o
PLUS

PLUS
l edh e o n b t na o o lb
l r; e s t n
l
o m i
l i o k o o ah i o ti u ape hithb
s
o uns s
n,t t n rden t n a fyed t co y
`

f p a s ss a t ror ise i
e
n
e pa0 r f i oem
f r s dy r f ic eaha o e b o at
ue0 e o t uii ot e o l hptm yt slagl u
”
h
t
p
o sn 0 d t n dt t p oli d t pp t sds ncre s l
l e n
i a
, i u ec i aaoc

as per Explanation (b) to Rule 35

o4 s n i e o . ga s n ssni e r t v
n e sh
i 2 n e
l o l a h t 0 n e a
l nead srsv i s nun l
i h
ep o a m p f
putl
p
a00 fu
o q o a e ac
e du e naer
h c tI
I a
Y y
t
T ndi s C v
i a una t , C v t
i h e e ac i e ..om
0 c
`

L
i u h san e4 y
l u mht l
a ee v s y r
P
P r ol
hoe0 . q c h4 p q y t a
l v mh r
e n0co
0 a
a s
i m t p e b hde r a, n
U l png0n
e u w fs u t nrn g ”ftso p0 g
S c s psoo d o y rs s

`
0 y i y e bate m,5 n
F l wah a, r d ot ne i s r i t
i oo d i t
i
O a efc 4
2
a
t e t
p a k u p f
o a
t n
i rxob
a n l
a tso
c
o3a
cs.l
t,
h
E u nox e d
i ahrlt o
e e m ot e ue do sR ss
U t
p aees n v l t e
t
a
v p u n r syr y
l qp og r ne
aern e dsoo
`

L e g t i o o t a
l l o e cor ap g f e rah
A c enue M r et i e a M et.) i yup nre r ora
t
V r a o P r n r k e v r v tl
i an ey uf M
: n e hh n ( e i
r pr h e de r r ps hpl t
c ,
t r
7 o hci t o hp ea t h sd e
s
r
e pe di t anf or.
c Wexw h Wat hmo f Ar uh nt,fp f ad
.
H e p T (o rtst
n
i
k aos u ut M
oo nnt e f
C r
o e f t s d si
en
he ehnt
t o aui o
u o o a B n n) dn t ks i a om n

‘ ’
m l e n u o ae o fh i
le t h mc
i o
r
a
v u s t
i .
e d i
t l oUow fct a t
, ”cL
s i
t
o t l i s l n a Bb g,x t e o n
aul s r a l a

‘ ’ ‘ ’
f e a eb a u a fae n m ht p e e d a c

not available
k v A va t
i ,ic o t i t seb ne m i
f
d it o
available

‘ ’
r t oicA) s . Apl ep r oer i
yt bm m ac

‘ ’
e a e bl e ele l ie e i
t
t k n l ruhs itKp e
Situation

m ap nb vb nap p a c e r
a
l r
a o
i epoa oa ot pSt em
r oct
r e d a os
u n t haiit c bc i u, a si d r nh t
e m a t t a ali t o sx es e c n oc r
b ps u) o l ep a
aahh e cra y Cd ye
un

Example 7.11 (Rule 27)

a oi n t
i e hn up
t hp t t i a l
l cp
t ey es s l t i p t t
i e fl dt v l ,
sia r
inens
e hpl pi b o es a l
l a s r o a t r i l t A aa
t oy ea br et a t ea ”ra n a e mia n “wl t
b np hc naho no hl t s ir d
y epl t i estn en l e n r y rs a nouz e
a
eu
hs hp
t .pl hon . e he
t
. a ue
l e
i
l
p ort est ansin
f u e
. p e
. r r e
. C a Cpl p seab sreo m
m Wo fs i Wti(i Wa i v, ddmu i

‘ ’
I ( a a ( taxps u on, s dact o
7 e u ous r e,es
2 ktsh
rdec g e to
n iheu
t
s r
f
Application
e a u fd ely me c
l e h o sy
Order of
u mtt s an e ih
l
R
a
r e n ymo
l s laee
a d
l
ng r i p po Mvi r

D
B
A

C
s ee
pt e a
t phml
t c m . o
u
p
i
h on hb uo
sb or ar rs
T “ iwo “ co KMp i
 o tn edl e s ell dt. ls
i unu d ei0
7.4.3 Value of supply of goods or services or both between distinct or related persons,

s l d ka a r
-

l ,o
e a ar o ahs . n e t h 0 mhe
a r vdf o t se a l a c 0
, it
s
i om no g oei c d u l
ehi 0 . B o
f g ti f t cv n r r 5 0
e e ew9 , 0
Manner in which Value of supply will be determined

y n n i i r oo
c r
e i
e kko o eo
l
r
e k o r s 0
, t t
n hb rei
a
y
l b vs e 0 a h 0 ed
a kat i nr

`
t T( p g i k 3 sakor,5 nte
l mli p i o i
l e 9 i
h i
u .0
7 0 c
i u les
e e
l i
n L f
cm
s 20 nfp l s hd f s
“

“
n sto u a0r . aLi

`
o e0, eop f i no o r p1e. e ml
c l 5 pea o ti s f m d i
u , ou e n g e o rsi e yu
edf

`
g r3 l e u e c.
i n oo t c vt
n
i
t ns
i
. ea
hv h l
a
i
p r o v
r
d
e o cf u
o
i
r aA .
d .
d
. t i a i et p ey e e
n
u2
7 nR) t
ey
v c
ee
l
c e
u e
s
s
u
t
a hc
t ot hb t
i t
i
oe ee1
vb3 eh b e
h r l re c tta
r t e aed m m
cl i / bt t eed a
v ob i
l a drk sr i i
cu g l0
l l e
n d hu /l p hon ea e L L
aR sa3 l
a
s
a t t dl p t t
i i e
f l l
fr dhe hhen f lke na a rcm m l
p f a a
o osl st i n Iar ah e e alin pof : m m
e hlyru m e :va ss h ns usi i i
ep
us t
e p y,r
l e k
a e
hm dy t nt
ae Ype siy
e B B
. l

Deemed Open Market Value

l r t e t ot y l

”
X a a mupe n p b t t n oli b mgb yo tn
I i p s
a s
a
A vd p e pa e s
i ne ga d e .h p
T e ess uil d e ep d ae dh i csu l
l l
l
et
hi e a
f g sa u ho fu e nit et a
baf e e
S
t r
ho( a evi s l t o q n
i i dn w w
E
C ,im t e n n hae a th
i e y m i
l m
ivi o mmo s s
I n tluo a t v d l a L uee
V eL s i tu
o t. eet p
p r j
n od
Mml s a a
R vl r
i a t
a h fn l
a e s r u
e
t .
r A.X re
ps u e
i d d
E Ea f v r r g o v ke c b s e e .7 a nsaa t
r e
t e
t
S .m rhee o u ese . rc xo dd s eb i v i i
e a e d s o uei 8 a i
v at f
o sor M01re
a the e
a
p m m
D r
oK pTs i n d r l h 2 mr Td i i h i i

Example 7.12 (Supply between related persons)

N
t s7.n o e
t h a u t e e te e et y2sb n T t d L L
A s y a o : s a t val n l
u
ns
er u m u
l ua b,el
t c l u.e e
t l l
S rb d2c s
e r l
e e evh e R po pe a l
a h
t dcv i a
h gni
o n a u
t u
t
D e
hn
t
i ele y s e r d h t
t o/ ne
I v vn eAr
l s nti m
l
e A A
O
t nu r a p a t e f ed ld e ei l Ted i
ra r
O o u i r a t e ,k , o l h o
rSse ure r n n n
other than through an agent [Rule 28]

G mf t c c r m s s hn u e T h1
t r t e u i i
: yC ro e g n a e r
a l
i n Ta fb T3 n G a t
i c det s s
I nA e n
o n i t s
e s a o oCi l m asi D e
r e e
af t t a f i f r r
cmd
T e d i s n i t e f t cfmi un0 a a a
om w l o o a B .
R no i e a u doiL no0

‘ ’
dh p n u h h
A i y etn
- o d i
p p eno t l
a e t n5. S X ac0 d s s
P el
l beo l
l n i u veh n v u s i
s .
e d a10 my0
e
t y y
b p
tmn o e c s opt e
s t l
a i l n
dn0t o n , i t t
p e boe eb a m i i

not available.
au o f e e e v va eio 0d sa8 u u
f r r k A

available.
l to aem , d s i

‘ ’
i
a s ns e w e r r t oic Ae) nt 0 e d . L q q
h

‘ ’
vf nae h t d v nt s p a e bl wc0i t oe R l e e
alu t k n l e og

Situation
ao e n o i i r m r o ap nb os ,
8 gr a % %
te che l
a n
i
b a c tf
a it
,
h .
r a
l n a i
t ea
ht
p oa
i c eo m
i lha r
o m 0
2
0
4
o u et v s r t r e u e m a t t i r trL a f i

`
nal urs e
l i e
i o he fd
I b ps u) o a l a n o t
i cs) B s s

Example 7.13 (Rule 28)

l eu y l n t r oi n t hn up dof Y p tr d d d
ev.o
sv
i a b l p a i e t t p l l
the vpp l a p p o e d t ey
hpl
es
pi s l
b o e i
s a ei
t t d y aoe
cnm n o o
i es) c p u d bw
i et e t oy ea br eot i a eb a h h
n
udt han i
l u s s r osh
u a h np epl hc nsa hn mni t
aml y ado d )
I )
I
t do p s e c H t t eu hp t i
l en t il
L p sns t e N N
Cin ,e
e nai
t p e e
h s s
e e s hs t .p
e ho .e
e pip nau
t
t
i H H
AF s i a h t a r .b
y n i Wof fsu .
i p Wti .
i r YxLu
e wif c m ( (
de.
a
cme r s t c ppl l i g I ( a ( a dr Ys og d i t t
el r d i n e
r e l
a 1 n ne f e L i i
z b s
ies i 8 e e s 8ph 3 i ap oo
t dat l m m
i h t 2 e 2u w esa u

Application
l a h h e dsne u u
essu
a l t e n l o t
i ael t
h

Order of
e ea u A S S
r
t
i
a ndc o l W W T l hyr l
l t
i n
o l
a mdr
v i e u u o s iten

”
n ,by rci tr mo e v l
r f liu

Case-1
Case-2
Case-3
A

C
ea wl r ) ) u lo irsss e
ct u m

Note:
fno oila e ( ( es a e L eah t i
h hf h

i
ii
7.10 t u0

i.e.
o Nwe T To T Xp pT AL (
q3
TAXMANN®
 TAXMANN®
,
y
7.11

dl .e, e s5.f t ) s .t
e .ne
t n ,n
s ,n
s
-

i
s g e
l r h i o n m i l n n olu o ue ue
nin b o T g1e e
d i
h d b a
v esa i
t hp hp
od af . nnu e ae drv a To To
cr cre d i
d oal n n t
i cl
i nen u .nd .d
fo i
l
p e e
t l i
t v
e
p ) o m l
p e
r epo l
a y
l y
l n
o c ph a o c e t
n t i ps pdi v i a. i a.
tAc aT l hee d d n l ai eet , ms8 ms8
n . e fst h e
t t e
d e X dta
a c s aon2 aon2
es. tI r o o, i o d t15 sel s u f e f e
o n n o i
me nle t
o ete m
i N ) e e ,
% nn er n h
T fr
o
sul sr
e
sul
eti u n g c L ( t p p hnr a e t e
l sd a n y e 5 sio . npR pR
Explanation

e r
a i e t e a n d e 2 i t fut
i n u
t
ep The r n X j e d 8c , ne o o
i d r
e i d r
e
a e . H : y n d t t n 2e y
l eh s t ep te
s
hd
t Sc c 0 s n
i a a n o o a s i eT r i t nat p
e Gs t r n j S e N n h er
l mw e n a s s
st n e 0 o s n p ( ( .t p fil a ol a
ka ,er e p , 0 i e a f e y t u e atenl eee cee
cel s
ud
i
p e 0
t
a r
a S o D y a s Rp f e b a d drl
n orl
ar
l hn i
c hr8 t
l h f
r
e ( a
j j
n
s
e ,as rba
e v e
t ee b snb
l e
tn Tu e t . u s o h y n l n don c
i e a . he a a eca
a oe l l l t c
i
see .d
)
r eeR
p
s s
n % e
v
t
o a
j
a
S S t
o su
r
ni
ut p e
r e
r
8
2 rtwli nwl
otp i
a t e d cs o 0 i r n f e l c ps e p
w f
i r n na s
i c 3 t b a f
o o n pva sa ai sl
i e dep se
r p
et
l e g e
vr
.
o a i
S e s a
l r S n s e sot5 rru nba
n e b a
b r su g d e e e o i dn mn e uo s pns
ab aoe e .n
s n l r g f s s . eo oran1 t r i eto i
Detail of supply

xs stcz i e oal i o n o u r gon t i s n s e sti e i e

ai a l i sv w h t
o u r o e ns a t ct io i
s p e cu hc
t
t ois p n r o e p d i l
e c ra 8ti ma faa u
n p y n o t d r a e ts l l

Explanation
to nT u aee t l
l a y s s l l e r s hs2e c n osa o s
Y o ppk s i e o nn ea cnv n v
i.e.

L i
t (isS s o
f j i s) s s
i s p t i e
l a na
P nc e mdr n h i
l i hd ua o t
i u s de er t er t
P esa gitG h oea e a s a m s
i a
t l e gtr r, R r nd s t e r tke
U r n, , t ctm h S e i a i a et ne bs e ea ua k da
a n i s y a t . r mh n m ca eudp p os r l r
S
sra h
t e
i
l
g ,
) hln
t e d r u an y
a u i nl
i e
i
e h hhn s em ptima i
h sa
i
F e t y t
r n % o r e e M S Ko J S V S r BT TTaa Dis Si Cit m
O i
t na i
d 5 breop d
E r e ap r 2 i
v t t t t
U a h
t o n nae o e e e e e e
L pf gdc a i sh r k u u k k k
nec le

Market value
A d,i i t h a i T p r l
a l
a r r r
V e8 g a A t t
i n . s 0 0 0 0 0 0 a a a a
: t 2 r
a l
e . s p a e a 0 0 0 0 0 0 M V V M M M
a s s l

of supply
7 l e hnr w e apb h 0
, 0
, 0
, 0
, 0
, 0
, e e
.
H e
r l cu l cm a e 0 5 0 0 5 7 nue c
i c
i nue nue nue
nu a
l s eoi c H 4 3 2 3 4 3 el o o el el el
C tn i

Basis
ur u r c l . . . . . . pa v v pa pa pa
r oeT h. a p .
n s
R
s
R
s
R
s
R
s
R
s
R OV n n OV OV OV
op
t
e : heS c1
i h p
soa . o I I
ssw s t
i wG h e
s w
yts0 0 i
s
t ao wetr wa t s
f
i e (C i ee, 0 e
l sbd f

Invoice Value
g el %o u hm0 o

Supply (Rs.)
,onfo dnn 0t qt o8 r 0 0 0 0 0
T oo u 2r e,c . p 0 0 0 0 0 0
Sds
Gsa
oti y %%es y 0 0 0 0 ,
0 ,
0 .
gc sla 05bR

Value of
l i ,
0 ,
2 0 ,
1 9 7 y 0 0 0 0 0
rib
n
e fs
o
app gmi 428e b
t 1 1 ,
8 l
1 1 1 p 0 0 0 0 0 0
e nu ni san2 b n . . . . . . p 0 0 0 0 0 0

Example 7.14 (Rule 28)

dioll ya s i s dh l s s s s s s ,
0 ,
2 0 ,
0 ,
5 ,
7
nt a l ra d l el
l i a
t R R R u
R R R s 4 1 ,
8 3 4 3
Uas p l s o t l
u h ptt o i h uw
s R u f
l
a y uao her
tes ,ly s
n
o
l sgn ew i s h l a e h l

Consultancy
Fundamental Rule:

vp sins cs mtl upp o d s a t

i l u d s a a l
t a
ep i eti nn
i uo hu c e e m a n a a
l e e m a i

Recipient
hu tB S a SnTs a t
i r m
y u i t
i r y n m
t s I I u a v u a u i

given to
,f s m S K a S V m S K a S V
t i i J . e i J
u o y L .
r .
r s s r
. r h
. t L .
r .
r .
s .
s .
r
Be a
j M M t
M M M u X M M M M M
.l
Solution:u n X

Analysis:
n a a o

Case-1

Case-2

Case-3
ov
i S
t . ) ) ) d
) ) ) n ) ) ) ) )
a e r )
r h M ( ( ( i
( ( ( F ( ( ( ( ( (

d
a

a
c

e
e t

f
 sntnt xe sof :
s f nss
a ath 0r ely i me t fay o ae nree
-

eie t 0o bp ias n o g l
p n t i e
i hth
yl
l tf 1f lp te.
n sc e sn p ) i p ,n
t yl T
p aip u o des l
a elu0 i g di 1 i n i t
i p . ,
pivc pe eti hsu i 0 to a oes u 3 e es l p l n
(The choice between the two is left at the option of the supplier
uue nu i
l r sf p
i
a0
V5, I s obr c gu a
usuta o
i
sqr i l p
ppa yo c
et3
.w
e
i
h gote e
l e
r ab qti npt
reh e la
l l
p e r e l t d . fn
o h u
r r e dnuo
e t u v ud plu k b d d rrt
o h nde q e

del credere
hnt ft se er f ae n e ye u r t
`

ua l an h
7.4.4 Value of supply of goods made or received through an agent [Rule 29]

t dt ha o cb a i
l p f o y n r t
r uy rke ela Sv t i
l i l p m r 0 l de e
uob or
f
t
i e fs
o , eMc
r
e p r
c
a
p p p
uto o 3 p o np
i
pes
fmy mr nri ps u ss f p s e0i s
rai t ea
l in ehu e
hep ae i
c s ecued e
l u e
i
k
end 5 c
on l b m L u uT
l wpe spr n
i g hs u
r s r ki 5r
,
f a i n go a . O i r n t d f r i
l r4x e
dau g nt Vs) , e c 9s p i rie n f o ,a fe
eeq i
l e
p od t 8
2th
i
o 2a e
e
b oht
o
o
s a
i c o h e

`
e re ei v f n n s t sto fe
dbd so t t hn ee n eh
l h
t s dtt i o e a o t o h
n,n i e S i t u l b i u e d en e i
t n hh u n ee
er
t e a th ,m
1
,e
8 u
R e Rr
l
u n o giear a i rw nAc ier
n i n t 2i 2m o h e o r c s a . dy.r
i l
p d ee 0L ea odt t ne e g a p
i s i
l u ,d, r
e nl ph
epi n i 2gs : l s t e eh w e hc d p b t
n e h up w
p b u oel b t: ce o p oper

OR
r uk i yone hT h e ell t
a c o r Rhe sml t e g t ero a o ruho
s
s e et a ras
ht i
v ei ,.
t
bn f ceg
i e h
t
ga
aca n g stl
t
X e k r d utc t oew si o r he h gea
A dh i rSt i r rdy n dw pth t n nef a

cannot be applied in case of services

l ee o e t nh t
T ot f hm byn wf pel e olo u eye y o omo i t t
n n
S
E
of
go o t ebe
Fdd en dlbpp g
a ol
gfo
l
a hbr
t y
.
t b s i
s af
y
l fe
o
i
u
s eee co nl v t e n d e s l p gq
C
I end r he n ns oa u n fe t fl
o i h e
i e i
r i na pya
V ho e d t rpe ar chS a o e awp n r mrh ua r
R t ioo he 4
1ee de esf yt
h k u,c i i a ee sd d
i e
pl.
t f rp s eo
h l r qn m c mv sea
nfd

90 per cent
E ep oeb
Example 7.15 (Based on second proviso to Rule 28)

g wb o g p f a e i s0t a
S r o n cr) . rce u po dor r t tth
D e of tll O e i che t e i
o u o ue m nrs d e
t n ctn
a n e5i
5 n
N heo. a a .r
s g at i
n pv l
a r sn n ae i
a e e ,h
r o enh,
go t 4 u
A whyn hh
t nai n nno u sn V h fo e dps d g e h al q
S ttt l
p o
s ses osw
sit I aer Ai
e t o y p nde
i s
i a kwo t ea
o
t r

`
D a e eh d en o k eh . n oyb ht e e
h,ape r c r nlo ypa When Weak Limited is NOT entitled to ITC: ht e ua
t t eer r t n y bp
bbr
O di e e eel a a t

b When Weak Limited is ENTITLED to ITC:

t lup i puo l b0 t v h hk ud i i l

Example 7.16 (Given in CGST Rules, 2017)

O s o e l e eby l , du l l00
FURTHER SUPPLY BY THE RECIPIENT

G sal v v def e1 ns
i i a b T Tlir a r f
l ,nt o nqu a a
e ed on eme l 6 a e vl vo a r arq h5
:
dshh e ri t b dc c l t h oe s s,
ea ea l4
I a h a es e e te
i tat pe a s t r hh hh e t gc n
r epda,

1.

2.
T v l y i c

Definition of Principal [Section 2(87)]:

erl

`
R
ou eh e ein a@ a
l h r Ts Tt b aav i g0npe

`
A oe l t r ps c t f i .
P rl
pa f r u
rin eh8
T yt en o f fe. e
s at
er
l
i e
a00 a c
n .
i
da r 2 ei di e o o o s, d
8ve s i i

Definition of Agent [Section 2(5)]:

sd a .
0 nn , d l
b gn h 5 n r 0
2eg g i d0 e
l ou
es a e. ea h nar i p 0
hri n h e e,0u uu ul uil w i co ofke 0

`
et t r t M00 l h m e d t ,
l
u , ae ola i 5 R (1 a
vT sl
l
a b l
a a n uer s tok e h 5
rntchb t m3e eg es. i e Vla Vav o. l d u e
clit
c i m o ni fyo f

`
t oe L z
y un he su tai tT nth c o dr b
oe oe l dr n npoet

`
t i sd . kra l a i t c e v e oo i r g
p cn
i i
v s aon Vbe ,v
C
i ois ka kO sb ,he uasd n
oi
sec r r oec e efa r oh rs rN r n f
o o t ace
i pe rlu i Wed t.
e ( Te
Is gt a i a s
i e r ott rtum
a
v
oreo m pa v
r dit s
u k0
r0
0 ld
l ft
o a
Ms
d
Ms
d
po sop
r
g
sesnd r
e
reht dve nme t a u n h no no as e yei e iunlyp
phts
t nes aiL M1, fa yt
l eo eo sce pnc i
l l
p p0
ty
s
f
o u ohr
cto dL. n6
rs
od p
pt
e pg pg ni
av aae p
pup o p
ru9
r c e,s eki t e f
uo
Oof Of srr us g s e
fib 0
%s t t
i an eoo o er nor st b

`
s i pe l sn ey ey e gel
ech 9hi eed d meu Ob b g r l r l ms aro ln
a n h l
hu hr o iWr l i
g eto e p e p lr eey pey i t a
Ts ot
t o Tc
o
g
L o e
p
ei
hw
l i
l
e
h ht
t
hp
u
hp
u a
po mep
n l i
c u l
p
f
o h
s
gt
ns 0
t e t nan Ws Ws i s tiop nqp
e e e
) ) oit1 ) ) et c d n t u i
r s uu u
( ( rn 6 ( hor ) ) no
i ec s pub s l l
t ( gu a a

ii
7.12 S u Wp ( ( r
Pg
o Aao f As sv
i v

b
a
`
TAXMANN®
 TAXMANN®
gst t0) oes ty, T fd d dr n
no t h l o e e eo
7.13

S
7.4.6 Residual method for determination of value of supply of goods or services or

o 30% r t w
7.5 VALUE OF SUPPLY IN CASE OF LOTTERY, BETTING, GAMBLING AND HORSE

i
d c ne 7ticf G sifi fi s
i t o
ee sul 1 2de e n c i
c v e
i r C oe ek s
ch
et srl
s
u snh
e a i n i p
e
p r c
i t
i
, T d s rt .
’

r de p l i i s s r n
pr os u s.
re7
1 t v s e f e i y
eo oa0
Gc0
0 l
p 1e
3 n
e
oe
rh e
i poh
g r
e
r
e
h s0, ri
e 0l pt l
p sei t
t
t u h
110% of the cost of production or manufacture

f dhi dc2r u m ein p Al h t o

o nt 5
, nn,s n u .a s i l
7.4.5 Value of supply of goods or services or both based on cost [Rule 30]

i
Kn2 i s r hd 0 i e f
y I( upr e i e t
e
s
f 2vr y o
n d. deu l h v nn o 0ee r y
`

a n4 0 eh t o i i 2cv e l
y ad0
er, 0 nt Rr
o G dm t
c ,ah
s f e t
t p
p
b i f er e e o
e kd
i
a 5
7 mhTt
t S
l
a ne
i p l
u
ec
hhi l u
s
l L ri p r t s e
Rtw
b n2, G t a e e f
a fa e
t wC o n t d r f h
t o
t n )o,
‘

n o S . e tfa y e n s
`

i .
s e g e
. dn C o e i t
n 8te t e
m e un i eom cb d 2 .
e c u
l
e1 a

Note: The Rule has been discussed in detail in Paras 7.5.1 and 7.5.2.
r c l
a i n et y gll e t t ue. a
e i vnt o
i bsi Vr b n a i
l m/ S a dat v
t v tuc t tns Iie i h p d0g t nt
e r
e e o rpl d h s p n0n S oS e
d s kod u noep e t a e1i : g cr h
t rco
c ncp t t
r y
ned e mei z e
l n t
o h a A asa u e u i he s

7.5.1 Value of Supply in case of lottery [Rule 31A(2)]:

Y
n c mt r
p cn s s . a
8 fi b Aba n r z ch a
L
u he n1 i n o - i i t
P s
i s eso f heaCh i gc dt g b n h o d
P hot t 0 n e a
c n r u a wy e
U h f TCs o f t n2 i p odO g m
S
F
t
o o .ro
Y e bmos , e/ ds
e1 ns e
l cee
s
s
r
O
tn
n a e
O b n
o ospfc rlensce b0 t ae u
r emh
e
i
h ef e
d
r i t o ob i s3/ sl i Se t t e mo
aor
E s v r ( h
o i sa% sn i a hp y s e
Tdb
U e t ny
L s
e v
o
d00
o01 e
cov
s
i e h2 i t p h See d y rr b t
e
A
c o,01 i s d wu t r b e o o k
V
: i
v
r
p g0 v sof
a r o
Ae
1at ts o Gbt
l
a
g vit t c
7 r d,5be r ep 3d o f o Cal t
e e y or i
f l e r y No n z r r Ger t

higher of the following amounts

.
H e
s o o 2ll s epl e, “t s ha e
t f
t s i rngh l sG s t et o

vide
C res Xsw oi tup u T ,c a a o t e
`

obo C Ae e yl l a e
slc dal y ssds R- 1p l r a s
t f t h
t u
dle nwp dunf e18 3 s u de
etc i n o S l
oah aXp o ao e e r t i ein a
Example 7.17 (Based on Rule 30)

oht sos u od5e h0

t e
l r r
a g do i
f o y hs v
ge1 l
gsr e
i tf n s ,/2 u n s n
i
nl
efO f p p t t e
feo
o u
t
r n
o o fmi
nca s
e 3 Re i e
i d
i moe t
n p
u
sk
nc
e c
a
l s a i e o i
l 0 fu l r alyh a s ai f
yva d pt u yerioe p . ol p -
r v et e
l
p o duc l
a l tcth po )v aup . e npt e e s h
peo ed
t v p
peen t uN 1 g v epn l
e h mt t
uhg a oe udsi Sn (eS , n
i o eui r t
esi f
sth l c bsd h o

RACING [RULE 31A]

e rh e h e g se. t l
,
r r pt seft co l t s n a i sof e e t
i a l
ae c
u efn d fboh a fii u
i t , e ,
y ,
g i
l r Aul a i
f
i
h
t w t
S
e
s
8
2
ft r o o lst c a rr h r n b e 1r heo t 1
o ps a t
s a eal n . c -e
e fi b T e i m s 3s u e d gr /
eaf e os0 t t t r )l r e no
uho Yo l uhi e pti u p ” t t a o ehi 2 an a t 0

both [Rule 31]

dca b l s s d 3 so sar . o e l ( s i y 0
l
a Cn nec a
veo
i
v i e fN rhn e L B G H u t Ava g a
l s
i r 1
vsi o ahl i v
oul o e C Rer 1ee
h
n
i e
r n o
t
ehi t
i X.T p emr rr t p s n ) ) ) ) sd
i
3t c w s
ar
gri e
)
ht s p hap p c i a ( ( ( ( e, i o i h (

vide
eea h r r

a
b
c
d

a
t fui l t s lon g e sh m n l e p l t e
eo s
oab e eer a p At Tu u l
u l
o I Ot T
r q pil b r hev sr
i i ss ) Rr e f
e s c pa l e t o e e 1 )
2 - h )
1 )
2 )
3
hle a uv l
i h,non r l ( ( eb t e ( ( (
uof Saw 0erg nRu hu f h
Wr W3 gpi I Ts o T
 ,e
e rys t ssTa .
s c
i e a i t
pbE tiSt
-

5 0 5 5 3 3 a r a g r
2 0 2 2 6 6 cp d r e f G h
6
. 0
. 6
. 6
. 0
. 0
. se el
uso , o koes
0 0 0 0 4 4 i l o e cel
i a
.
e 9 5 9 9 1 1 h h
t a p h :
r t nbr
t 3 3 3 3 4 4 t ven
b g t .
t e roc aha
a nor eta nn d e s i a7.
t I co ae n pil
`
`
`

`
`
`

S .et an R e
l hm u o p M1
.
e f b t eh p , 0
g
n
t
a k eni
a
s a rrn s
a uw
l a
e
e 2
i 8 8 8 8 t c
i hc y c
i e
hve d a ,h n
ue
,
s
s S t T y l
p . l e Vd
i
n 2 2 2 2 e .r pS
T p t
o o t eteTPu l
1 1 1 1 gh r e p a ci . tR
a / / / / nt ot
t t uG a eG l amo a a
g 0 0 0 0 i
z u o Sf e t
a e u Fi dT
r .
0 0
1
0
1
. 0
1
0
1 i f
o blo fo r t t
a
c
l ( L G eS
O 0 n i s a S t a ynea t
a If the price notified by the State Government in the Official Gazette is ` 448:

b If the price notified by the State Government in the Official Gazette is ` 530:

5 × × × × ae r i tnt T c d G
e glu t
sTh n S yS e
r
e ai cC
h 0 8 0 0 r i eou ne t vs of
t 0 4 0 3 a d .i G ah b tutl
`

s ov
y i
t 5 4 5 5 a0pm
0 i S nyt l
l o
l hudo
o
b e ee o2ca d i a yBnt eA
k hc
t t , e n db h l oe i 1
e
t c a s4f r e
h a l
o n s 8 k t v m 3
t i nf y 2 e)

Example 7.20 (Lottery authorised by State Government)

X e t ae
t
e sot t T su l 1 e0 eil
L e

`
A z y
r hh ki nu S er p
p / 5 5 w0e dn u
T a e t ceo o e G bry 0 7 7 i8t R
S G t
t rtf
i
t t
t i
t d t C oe u
S 0
1
3
, 3
, m iaf
v
E e yze a a t t 9 9 m uo
o hsi

`
l o n t , t f
C a l h2 .
r r a c fi S m do o 5
, 5
, siL h e

Example 7.19 (Lottery run by State Government)

I i a t e o - el e

×
V c o e t Gl a i e e 4 4 kt B l
R fi f 1h t
o lel o r k wis u u .
s .
s aetanf u
r
o 1g s l l
Deemed value of supply of lottery as per Rule 31A(2)

Deemed value of supply of lottery as per Rule 31A(2)

E f e e e/ l a h t k
i ot
l l a R R a z vob -
S O e t t t
a 0 i 0ci Ta n
I S l i
, a V ha u eu
D u t
e t
e t h 4 fi d a ) v = = a G c
e l
a z z S 0s 8f .n
% s
i n
i tm e e MlBf
h fis
N
A h v a a 1 i so2a y e
o i h c
a 08
0 0 a t
t G G y r
e e y l nk t 5 5 fci y O n
S
n e
c l l nb e ub1ls
y p
p
t
a
t si
i
k ,
) F 02
11
2
,
1
2
,
1
o fibdv a
D i a a ao v sd i p S 2 sf dal e

O a i i e s p u S y. ( 8 8 t ol

×
d f c c nt h i e e u S - r A s
t ,
2 ,
2 e o ee

×
O i t fit a e e 0 0
G e e
r fi
f fi
f dc n i a S f r t .
i 1 e 0 5 3 3 kys Hr
: fi
i e O O de
l i et r f o t
n t
o
( 3 k 0 2 . . cbe
i ser
I t h o m h mno T o e I l e e c
i ,
5 ,
1 s s t d bi

Lottery run by State Government:

o e e sew t l R R 0enys p
Example 7.18 (Based on Rule 31A(2))

T w t
e h t
e h neG S e r s sta u T 8 l
R n y k t k t eee , rc u u
t i i
h S R f ,
2 f
o f
o
0i
6t
fia p a

×`
A s r c c bdt e i . l a t
i t o 3 , c p
P
a e i n
i i n
i t vr a n e eng r . 0 . % % 1oyul y
t t t oee opmv c ci e
p o 4 s 4 4 dne r S p
e
c
t
o f
o
d
e
f
o
d
e t bz Geitk e e
h n niz s
N 8 R 1 1 est fp
i l fi fi dlla hk a i i = = = = = uea t o u
r a e i e i ea G mti l T S S n A sc o tS
p u t u t w l iasSu s l n
s l o l o h k c i i s
ieo f
e n a
v n a
v n osi a keea
i r d l : srh
p i
h u l p

Value of Supply

CGST Payable
SGST Payable
a

:
t r e e l y c S e i
sC T i e
e c e c a l fi ,hu t he. c u
f t c i
r c i
r tpp f 8 . tthre l
a
o n a
f p a
f p o o 1woi m n orv

Nature of Lottery
8 e u 00, estee
f f f f nS e rk a u

Value of Supply
2 m o o o o 20 ok me bThh
n yf h l0
1
/ r s
i s
i s
i s
i r ont i
r ,tS
u i nrr
ret
i
.et
0 e
v
s
a s
a s
a s
a
e
t p5bf e h s % n
R 0 o b b b b t ei A i
r o vwd i 8i
o u st o 2

Solution:
O 1 G e e e e l l d gi s t
c G0ysr m
a e nti 0 r
i 0eit

Nature
) m h
t h
t h
t h
t av fi i e d r e
set i r kes t a, t e

GST
( i n n n n i uc i o1 t t
a e
b
k o ithd o

k O O O O tt
I hn Dt G l r D
i

`
S
e ) )
h ( (
7.14 T

TAXMANN®
 TAXMANN®
e rx ,n l n .ae s oe
e h oo 7 a ” nyt t h
7.15

h t t 1o o y rh ebe et
the Supply of lottery is exempt

t u b c i r a t vsk
f y bin 0s o n e wn i c cr
o b i 2d L U t
t ho g ti
e no
r d ,o / o s nky t at
0 8e t
s t
c o y /
t LeT c he
t
0 2t i e r n nS oi r cb
1 1e d fi AG o ag i
tt e
e z yei
c Tof t
i
e r
a iG p yot
t fe
o
b a r r m Vf mr l h
t
o lG e p Sy r n w“o eef
t t s Gl e r h,t
n y xtto mf
d ia t
o e Cpp t e so i eo ro
e c l n v e l
i l y oe
r fu o o nrb ffp l f
m fi da o i gea o o elu
e f eh s n G i t c p
a
e O 08 s
i c )e
3 U y
Vai
“Lp l
seu
nl S
hv
t
d e 02 r i ( h. / osa
e th 11 oh 9 t T t b r.p
o) i
t n ne
i
hw a o c

7.5.2 Value of supply in case of betting, gambling & horse racing:

b n t nofS n d t Mn i
d t, a
l i u , oeG e e u nnd s mf
Value of Supply = No. of Tickets × Face Value ×

l
a d ans i m i
l bCo
i oer ie
.
e h e nio t
c nay n p r
t
Rt
(n cuo
q a
l h
l s fi
ai eop r pr. s e esew c t
b y t
l
i t s so e uo i
d m hb eof
a o yd rat v sut sm r l
Tax Implications in Case of Lottery
c p bn , sni t ue b
i
l p nr .
so . e ”e 7 o sb t
i m sst h a%
p u se t s dyl 1 G a i a o l
p S ah e c d nrb 0 wtr ohC fi
l yo n0
e
t a f ei g kn o uea
t 2 n s
t c
et. u nn o0
i
Y a s o c h cai o t i , a ydi sM
t faI t 1
L t i e ri i G to l 8 h r n ,T. c e
P S T u pi s t
yet
r f
n
eLi s 2: t
d e d
e
keg e te
n ab
P -
r S l r y r o e er t cg a erSl .
e fll
U e G a ee l e c mofnt e fi t e i rl goGb o
S t
n I v th v p
p t o y n i e ns h o
l z
i
t
”aa i afma
e a
F I , e f e t
o t l
p rly uti t
o r y h t l r yh
l
O y
l h o h u
l p e p p Ja no r Ce ihe oy p s
E s
i p t c S f t
c vp i ds o n eh e r a
t ra pce
y p , ri
) h f o u ou c hut t
t es
s e Tfp
U o o e e ee s tt ua

Example 7.21 ( Subsequent Supply of Lottery)

L l
p u a
( tw 08 ybj S GS r t r wa o
l r
e
t
i r .p
7 o Sr
A p S ) e 02 e 0 l r e a a r f o1mn
V u e 2
( ks, 11 u
l
0
0 p u e l“h
a ds e
p de te
o
vo
. t 0es fa
: S t
a A ic e
t a , ps d r dt ,n i
a h pReo r r2xi o
7
t 1 t a V 5 ue n t es T o ny pot k nt o,eT ein
×

. f S 3 ft 0 2 sbl u n fin Ci crou t 8

H o 0 0 e , ta ei t ae eS ug
C e -
r e oS
l 1 0 h 1 n d Cota -di a st
a Jdor b
i
u 2b
bel G l
a n
e e g t 0 e 7 s y t
r
u t u u n 0 f f 0 ey e
onm 1n y i wit nnt sst i
r nli ,
” vci
`
n R l i , ua r eue t y
×`
t
a I r ai
z 5
0 2 o o 0
, qp e t s 0o r r dor i s uwr ea
n g e v n 0 , % % 5 ee v nha t
I 2c e To l kd i
d Jnt e hr
t
n p cega 6 1 8 8 3 s b o et . /g t Sth o t c
i e ot e.
e
h i
e s a 1 2 2 bt c vn e 2n t Gu Gut
b h
t ydsor
,r
A s r
r uo s i l .wi o “i be L o

`
T B A f o = = = = = sn i g eab o l ela dtryy
r tpe 1oa t

Subsequent Supply of Lottery:

y f t e b sa a 3hs
nl rmc Nlo o a a es t t dya r
oil r e i l i c uit y e eofli
tw e wrnpl no r r o sdoe r k,nw l a
:
:

:
a t
t of e
i pL s
i ylt c1
i
7 a h u got
hT o oep
v i
t e l . o/ sbm et t 0to s Rn
t l po a a h pt y ry a d o
l y2” e
fliet
eGS f fG s ct p pr hiof / n
Value of Supply t o i u i
r po a r yg o bh
o fif S tpso e 2r i

IGST Payable
o , y ealM i
t i o at n s y
t
t .teV )mt
3
nt l s o eth eri
r ent e l o o t“ ( a o
on p i rC meup p l Noy gnt

from GST
t e p c t R N hu he e f Lb e,
n Ta Tt bu l
Solution:-

tag u r e r nbi o nan u g i

n . S e h e rsr S or n d
Nature aliow xCc
eeh i p ) ) e
vasn
tt yt
l i aso ri
- t i
t e ohie b a
GST
a ( ( p a tp
r h d cwe r

b
oet l nthw s GT”u p fih ue
e T I A ui sp sbt

Solution:
pr b aSyer q St e y rnu n
men ) ) ) l G e o nn e
ihe 1 2 3 a
r ett s sNg a pni o
st ( ( ( e ho b i
h i
i ogv
i KTLs u Tin“Vo si m
t
I t t Awa
 de ,sn
e nern - d e gyo t
nb t e e i i e l nan
sub-section 4 the

7.7.1 Services in relation to purchase or sale of foreign currency, including money

There
e
value of such supplies as may be notified by the Government on the recommendations of the Council

ao u i
l e end e s b i ml
,
) ppp b une d s a y
l
st
e su l
a ab e u x
a. p gal
gnt ( i
d e vmr i r c t pn h
r sav ) s
i fng ui s
a u y d ees c s d o sgn
p
ho nieh hh
t tre m e en
i
g nan o
cm af
il
s
e ,
r n p a r ua oh i
t
fa ft e i t a l sc p :
t
o r o ou t s S s a h r a
nge enr p d
ele
i e e
i
vc
ey
e
peyot
h h
oa s nse an p g l he ncr
i a i hi p a p t ] Ao u
t cta e t p a
7.7 DETERMINATION OF VALUE IN RESPECT OF CERTAIN SUPPLIES

c w r h Cmu s fon )
2 sle
ual o ner srs o u o ( md
T i s c

Option once exercised to apply for that financial year cannot be withdrawn:
dt ) i h e
t e P nm 2 n
eo 1
( scn . t e h n c
i og 3 g
nai s
dt nfo fdt a f i e i t
rhe aoi o e ,
s hs i
c t
a n
i l
u d rI
a
eta t
“notwithstanding anything contained in sub-section

e c sb t e e nd ue ,
t t me n, u ric s sp i u R l yce
f pau
l or h1. ) e v r mcl f c
a s
e ts i eT3 d ) her e o nln
i
( I s i o d t d e rn a
i e
sid .ev
) r
i
v l
p
.o
n h o ) o
( s i
v v e
t i ) ,c
y H
Supply
t 4 r t t l r o o ,
X e v
i ( n o op o e h a so r b
e y ( cnr .

b
A bd 5 i f ru i
t 7 M t
e n p/ p a dc e naa
T
/o 1e, ps a 2 M o mnd fn ] s e n
s e l ) i e f o ) r i e
7.6 VALUE OF NOTIFIED SUPPLIES [SECTION 15(5)]

S s us t e u f
E r s
l dcl e hele
h a
a
n d
o l p aa
t c o
i rrr 2
( a r
ual
y
e nnu t a
shall be determined in such manner as may be prescribed.”

C
ga t vul o h n O S s v e e 2 l a
I
V ad aer
H nf
i r i
t t o (
s /d r
e u nu 3 C
[
c r
oci
f e nc
doog l
R ). e p i
t d so s e n f
E wn 1 h o M p no a an l d g n
S a ( )
4 t ensi n ( l O
o
og
f v
o mig u e i e a
D et
he
5
1(i n noe
i i l w
s
e a ( o
G pf s of R g e
r un
l i
t n s uo s ere n a f
ndd a u ov
N t b p o c
i o s d a ho f a
t orl oly f t
one o
A se l v i e l n
l a n r t n Cp c t f h feh a
S
o h i
t t oero e p n
i a /p o
i sf ) c o
D
ot c )a
1 chef S O s H u
d t e ( x ht
h e a do etf

a
O t ( u ss e
O pg e( l
u gt t y
l g t B d r fi n i e l n
G tin s sp na o l n n n e a i
t i v e
l s y a i o
: a nnt i i , sta
i i
g e e o ht o m oa u c s a t
I hac oio h
t l
l e : n g c c cs n r rs a n rrt r
T t t s y a d n s
e a A n e un y e pr l e oe a
l a oai C p

are two options given under rule 32(2):

R ep tc
c s nhr i e l h l r s
Vg b t 7o [ r
r cg
A cs. ese a asr u u C e
v u f
o /a s de 1e e u e s
P i nns f -d gwe q r
- a s s e 0s t c s a n
v f b e e b y r n r ne c o 2a a a i
esoo e u n novs
i u
e
n T I e
l el i
v t ,h R f hoi
t n
dr s gs i d loy
e s o e a kb r s o cr a
dee r nr m..
4 nb2b M
r
i f
i e oa e d e
l c
r e t r
u e m
epp i e r a 3d d A L D Tm S e u u c n de
s d ve 7 t d e t Rp n u pr
i sg i
r t a s e e e t
a a
l e o ooe r
r u n - o e r hfi l
u u l / e To r t
e oi r ld t i l ds e m nh
t i i a i c Rva e nd s r St

changing [Rule 32(2)]

u r n e a P we r e e e s ao e s s f a n,i t
vv Gn e

Category
pai n oe e tp .e e c
i c
i c
i d c n r s oI g
srb i
, b n so i Ci s I
mvw )
5 npr l i o
ns e
t
h
t
v
r v
r v
r
o
o e
cG v
r
o
i eta I o t
a n n
i
ofe ( al li
i l f t e e e e G i e s her B r l o r
coh
) 5 silwt a ,e
)
1 i
l
a
nno r S S S v
r
r
o S vi t R G e
r i
t u
t 1 a e o fp p d
aes
n a wee (
2 p i
e S r o f
o f
o nO
sx
i
o
t o h) ud 3upr d
e
g
n p )ar
s s
i n
a i
t n5a l n
i esee i l (f i i sew
e
rt d o(vd l fhn a s s hra

a
c w )

OPTION II
oy e i 5 u i 2 o a a c t

OPTION I
e o c i

Sub-Rule
t r t s t 1 e e Rt d e o
l e ( s b b v e d
a u c hin el l 2 e r s h

32(2)
32(3)
32(4)
32(5)
32(6)

32(7)
s ob r ent rcdr u o p. 3c e e e i t
ltr
i
a u i e s o
i , a
l e e i
v f sw evi h
t h
t s c
r
i
w
t t t p etc o p ppo s e elo l exe
7.16 o a s
i s he s
l x ses rhi h he u r
e n n e
Tst d A Ts a e Ar pt T Tb Rs O O he
t b
TAXMANN®
 TAXMANN®
t
r gy efy . le
l edes :
nel hoc 0eei ae a h nre sle netp
7.17

a i t kn 0gl ud h
t ht ooe
f b ovae
p d m one 0na
, a n, sg i
t e pxa i r t
g ua t arr s
t 0 h vIe ein a
r t ua oe
t c es
n l
c n lB i 4c
$x efc ug e a R t lecn g
i
n n, a u n hon l n dr f a r n
i i r uec u Se t ke a i
s e n
ao uer e i
a ,e qvf l Uf, nH va nci qv e w
m y n ero
e a gol ea . eh ondu
e e eaf o
e
cn
na es s t
o nebBc
t a
y hc
t cr nl
eIa eheo l
l
r em bei t T i
l
lr
e
a l
ive n
e ,
e
n
o
sf
a ef, v bdrfe
e r
r lRn
l × s , a
ver r l s 0roe lu
l l he
h ug a elu rer as r b r 0Its a t h
.
r t cin hh )
e ov sec
u ap
l
e 5Bna hott
. e g nw
st a
t t f
keiRf i
a
,
2 Rou c swa n
d i
l n edo a nwt e eo vhe $,me n eyyi
e p i
r go
i unt r aoa at e uead y
r
i p u e l
l l ae l BHrti
hs
t Smai v l n e
d fi c
a a ty a
u
q
u
s d r
ofo ve,th u I.edn
Cec
o b
Utissg votl i y
c
n
e
t nd dtoe emap
(a) For a currency, when exchanged from, or to, Indian Rupees (INR)

e n f eby Imnnl u n r
r f fhe hyb c Cieaa se earh hhe h e r
o w o t A Itr e i vhgt
i t t t m r u
s
i n a t ,ad t e t t yiv . e tei n ,to nsi r C
r ein & da a o d h s u

Take lesser of the two amounts as calculated in Step I

n o d l s
e m e eh f
e r t ce e
cA
e. t , e g C n
i a i nc e ee a

(b) Where the RBI reference rate for a currency is not available
o t h s eep l e ht r ghe v r r f ein i
ee c eb

(c) Where neither of the currencies exchanged is Indian Rupee

i
t e t s e ps t
a ctIn r r i tla o n pg n d
r i ric ual i
t aa Blit r e I py a n
p c w ov r o
r5Rl y s r c .l%H
o e un ua i I
o s Rcu eb t uo e A RaR d
On the basis of RBI reference Rate [Clause (a) of Rule 32(2)]

i e r em e p6es i cd r Sd1. m n o
Y f d ee c p n USb e nh I t

Find out value converted into Indian Rupees

b s nh d ae y n
o e
acno

Example 7.23 (RBI reference Rate is Not available)

L
e a s at , n asn ch ` u r e d o i
P
P n h t hf i s e e
r tii t
e
i
lg: l
a
rd
oi
o fUl n i n a t
n d
o t o co d e c $ s p d o ralo d odi h i e
nai m t f
U n v e
S i t n r f aS,i i
t n o e .p
c hm nsn t t
Example 7.22 (RBI reference Rate is available)
t r , r i ero I r d r
Ie
p a l ue I e t e t U w e l T t d n2se e e
F l ,t r n o u w i spe
O o
d d a
h
pli
p
o
t a t
a I oor N
c
n m o
l × a
r p v I
n6
eh
u 0 i om t
r
e
v
n
E
a e s ep r h B cf . e , l ) ees o o l t 5 dete v o 2
U t hu r
ogt t re$ r e o $ r a g 5 ehnh c

`
p R f ce s , gtiT n
L o n t n e t S e
f m r np p n@vi n 1 o y e
A n o o s ,li a n va
orUf
e o s h eg nss. u
V d i oe
t ml iti h f eu e oyhn ati e a c c l
a t e y e lerdt t r Jcta hnc y n a

`
: h p h os c e l ce e e R e n = i
d e V
7 c
i e o nt re n w o
renph e a o
t t
a f n p oree,h ) cunn c
n r
.
H h b oy
i f e t tthl r e u t sc 0 xor e e r d
h t b dhr e ar 6 a r a
i R sran 0 emr I r u n
C w o c a etr b ofe6t oatu g ad duco 5 sau f r C a
r t u l
e d gru t
n e l q n
i
l i
d n n ocss ,
2 e o u d 1
s e saye oni ock

= ` 40,000
o n r e noc r l I a gghr i C n

`
i e nf × c e
f o
i n nin aea t c
n dIiuce n S I i
d i t e
p nwoa n t
s o u
, q ee

[Refer example 7.21]

t e i hth eBa y elb fo n n 2 etwB r c l
n p h sr
m cat e
r r
e Rder r l
- o t I mrI
o es: 6 r e t i e a
V
o
i
t
o t
, e e xrr
g e t
n
.
$
e
ebuw
i $
r kn f ofe .th w ( r h
utev e
F S
f
en f nu sel = =

`
p y d ct
i o f e S h l c o o b ylo f cft h o
o r
a er. v e
d ni f i
D sUti l t e
c f 0 ao % dt
ed
ha bol o o r
e
1 2 r
t t s
i a r eye ( a rwh a i e 0 Bm 1 t l,f
i % er fs
o e e e
l n c e e e hut hro v t
a 0 ea r lads 1 he e u u w
u u r y s b wbr a = oefete r r ,
0 vss = oo v e
va t syR l
a l
a o
a
f l e l fll ee hpCi
4
c r
os e 4 r psai
xdte e
fs
o e n V V L

Value of Supply =
o xa o ,h I v e o l ae
e v ei a y w6 Brfe c $ s en o cb re

Value of Supply

Value of Supply
d c yh ctn c r Cse e l
b n × e r
g .a n ed e gth
a sn l s nne e t a e d r l hthn
i p f r Re t s

`
a , eir do y f a x ) ei ru iby
s s
i Ia pg r ee ne boe r a e
f 4 eh Lm s oo t
iofrt
i I n un r et t e 6 hft aar e
I I
I n fi sgi uncf r a d y
l c f r - t j sadw ntee d
ot e i ep no . a l e v
n n i a fn
o
ce r h r
ear p e I
B 5
6 eoe
r
y r
a
e l
hoi dce ee
r
n nd
t ara e

Step-II
o o a Dh u r ( %n htdo v i c ovi

Step-I
i i p h e i .t l
c sfe u R e 1o v e co
t t ot eh rff d r l ( he arSr r hry

OPTION I
p p uc oi tdefe a oUps e e

`
O O fof l Fd n Ma orv = = Wb m Mf Wp bpr
I a y I
ve
en
u

u
ho
Tm
 ng: f t
S on o n sI.
e B ) 0 0 0
U i
t i s u dR( 0 5 0

Amount
r a w s o i )
2 0 .
4 5
e l e v ,
p e o c m oe( 0 6 6
r l
l x a rh2 2
3 nfo e n PT3
6 i y$.le
ee n
i a nSu
uh r a R $
`

s
i l t t o prU
n

(`)
(`)
$s: a f r
ve u me e

US
w o d
So
Ul eb m e
g
opp
C5s
l hto
ro t a n e6a
On the basis of Gross amount of currency exchanged [Clause (b) of Rule 32(2)]

of ,
s d n a
h h e
f s e e a Tfm

`
ea cm d c .oe
i e r x i h
md v e g o e h ec
it
t e r e n f y l
e t
a s
tla e
s d a d c Drg
Example 7.24 (Neither of the currencies exchanged is Indian Rupee)

a u h e n en
fe
Value of Supply
I hc c g e wh i
I t l o b x n r
r et d
p ta l e a u Natn
e a c l h u
at the option of the supplier
t ee a c c ,0
d o

(GAC)
X S t b y y h x f a0p
A n a
r l c c s e o o0m
T i l n n ,
g y t R,o
ei
Take lesser of the two amounts as calculated in Step I

Example 7.25 (Compounding Scheme for Money Changer)

d e e I
I c n 0
S
E e cw r r
r p
n
i y n u a2c
C n ny r u e g c e o b$o r
I i epl u C 0 t n n r
r m mSf
V m r C 0 S e
R r e
f p n 5
, a r
r
u a aUd
E e e u
s
n a 0 4 n
i 5 h u c s hde
t r a 0 i 0 c f s kl t
Find out value converted into Indian Rupees

S e i d 5
, 4 c o0 p
d If d 0 5
, 4 d 5 y o ao
D
N Bo n 0
, n
I 4 e
n ,
4 e f
o t r0
g r
a so
e Rue I 7 o 5
, i n t n 0
, Bny s
A u . f0 a
`
o 6 4 u

Whichever is Higher
l l , t e m o n o

Whichever is Lower
S ea t . o tah:

`
D a hv n 5 n
i i r = m u 0
, a pLw s
v i 0 e o m %0
`

O f Te d = 0 t 0 a 11 dmI
d g m . o
`

O o .h = e 1 5 e 0 0 eoTl
G 0
0T
e
t 3 t
r 0 ,
4 d 5
, n
i a s
s
t
a c.o l
% sf 0

`
: 1 5. r
e 6 e 1 5 e 4 ,d s o uo ce5 f
I , d v v , u 5
, 7 u s r0 l oh .s
T = 4 n n 4 l 4 1l o g 0 p s l 4 a
a sT6d
Find Value of Supply:

n 0c r s 0
`
`

R u o @ o @ v g 0 f,0 0e 0 i .
A c r 2in o

`
g
£

Ko c f f 0 0 0xc 0 )n e

`
P ,, f 0
Value of Supply

0 0 o , L sa

`
UP r d o o s o 5 0 %,0 5e t
a 0 n 0 0 e y % R 2
, 51 ,
5 R 0 Iiil
g

Plus
oUK l 0 u 5
, 0 % % l c 1 . n O 6 Tn $u
t l ,
9 4 0 1 1 u 1 O 0 i ( Sc
n o o , Ren daUa l

`
`

`
i r D $ P 7 = = ech
de 6 r t rc e

£
ep S S K K ,
5 Tr i oe d g
U U Su myf e n

Value of Supply
U U

currency exchanged is
t
r 1
0 = = = = Gc 0 0
0
0 ieyb
L n g
n a

If gross amount of
e f l h

`
v1 o Cn 0 0 0 oaa l a e
t c
1 2 g 0 0 , lm
a d h a x
n
os e e r fi
o ,
0 ,
0
0
0 noa t h c r e
e e s
`
ci u u w )r 0 0 0 ,
0 ot h x e f
e l l b o 0 ,
1 ,
0 1 i
t t y
l e c o
r a a o ( f 0 1 a nr p s n

£
a K V V L ) ,
0 noo p t
i e e
t
2 f ri r

`
0U ( o 0
, g g e tfu
a n e a
r

`
0r 2 1 n
i o
t n
i t l e S u f
3ly e t e l
Step-III

0f
, o d p d n
I r a f f
o r a
ep e e o u
9 pnre I

`
l o u .

OPTION II
d p e e t
$n u u t c t c rieu o B c
Sa Rs p x u x oscl N R A
u E b E cena

Step-III
Uar re s c e v

Step-II
e nvi r

Step-I
ell pth ) ) ar e
f e
ho r h

(b)
)

(a)

(c)
7.18 Td so Tsere T

iii
At ( ( (

ii
i
TAXMANN®
 TAXMANN®
r y
7.19

0 0 o e
[RTP Nov. 18/19]
E.Q. 3. Rolex Forex Private Limited, registered in Delhi, is a money changer. It has undertaken the following

(ii) 2,000 US $ are sold to Sriniti at the rate of ` 67.50 per US$. RBI reference rate for US $ for

0 0 n y y
Amount (`)

5,800

5 3 e e o
, e g c c
5 p rn m n n
u oa s e e
R eh e g r r
t c e n r r
n a p i u u
(i) 1,000 US $ are purchased from Rajesh Enterprises at the rate of ` 68 per US $. RBI

a r x u d d c c
i gfe R u e
d no S l
c g f f
n i U n n n o o
I y e f a i a
o um o i
d , h t
n t
t
n bi s n y c u n
i net t I c x u
eh i
n f n e o o
d et o e
r y m m
e
t wt u t r c a
r f n a

Value of supply
e ta o n u
e u c e s

(B) Determination of value under rule 32(2)(b) of the CGST Rules, 2017
v by r o r s s
s
n enc e n r o o
o ce b m g
i u r r
Determine the value of supply in each of the above cases in terms of:

C a e c g g r

OR

OR
nr m r ( ( e
y er u s
s o f
o r w
c r
e u n o f e e e0)
n f c l ry. f t h h)
t h0 o
l
e f
iat a g o n g 0 t
r
r d t ene u i f00 0 s
i
] u h o ho y o h o f0, r
% st T d l , o


1 C i t e p m s
i 0 0 e
Y
L . n yor × fm v p a r 0 ,
0 v
0 l o u , e

` 1,000 + 0.50%
P p f ) e i
e s e 1 1

` 5,500 + 0.1%
P × g
i pe $ %h s s v h
e 1t c e o c
U ) r ut S e e - - i

`
S 0 o say . U =ng r h r h h
frc g
reference rate for US $ on that day is ` 68.60.

F 0 f s t c d d w
O 0 f o e n f
o e i
g e o e i
h e e
,
0 I enc e un e t h g g
E e l p t w n n

` 60,000
0 ue r n

(B) Rule 32(2)(b) of the CGST Rules, 2017.

U , l r t a a u f a a
o
(A) Rule 32(2)(a) of the CGST Rules, 2017
ru a h

As per Rule 32(2)(a) of CGST Rules, 2017:-

L 0 a Vc R i o h h
1 vec r t

` 250
A f c c
V -
0 een g n n a
l x x

IF RBI RATE NOT AVAILABLE : -

r n o a e

1%
: 0 hI g i e e
7 0 TB i i
y s d r
, e r
purchase and sale of foreign currency:

. u e n n
H 0 Ror I i d
Gross amount of currency exchanged (GAC)

C 0
, B p n

IF RBI RATE AVAILABLE : -

3 dff - e f
o e- a
1 h ue 0

Currency exchanged
( no $ t t l 0 0
. as S n ) a b 0 0
e yit 0 y u 0 vo 0 ,

that day is not available.

.
i e cn U 0 b 0
o 0 tt , 0
[ b nu r 0 d a 0 0 0
0 0 l el o , m , hed 0 00 ,
0
0
0 0 l
a r f 1 e
v a 2 t 0 ,
1 0 1
, 0
, h r a
t e × i s × sm 0 ,
0 0 s uo c e s e e ,
0 0
ct ) c o 0 0

`
0 0 e n r 5 de 0 g, g
Value of taxable supply
,
3 , u fy e 8 e
r . i d , n0 n
1 0 l o r 6 g 7 v 1 i 1 i
1 a b e r e 6 o e d d
v ed
t f - o h r b e e

`
e pl

`
t t ( o eo e

`
a 0
`

= 0 f ` e e r 6 d l

`
r i I h 8 ) t ct c

5 0 o h l . 0 e f o
f 35 a p
6 0 s t gip B g 6 0 d o , ( h xp x
, u U

b
0 s , nlt 6 i
v % % 1 ) s Eu E
e
0 c i
l R o o 1 1 2
( g
l u ( b (

vice versa
,
`
Value of Supply 2 n

`
× 0 x e r

`
1 e s m = $ = = p = = = 3gi

S. No.
0 en
0 n .
1 .
2 l a
0 i u . . .

`
,
0 o C
t h 1 2 3
2 p A R c
= U G
C
A

Ans.
G

1.
2.
 nna lrtle e ee rt,
ain re h mly l b y
When the entire
premium paid by the policy holder is towards the risk cover in life insurance, then this rule is NOT
7.7.2 The value of the supply of services in relation to booking of tickets for travel by

7.7.3 The value of supply of services in relation to life insurance business shall [Rule

y
l au ob t . u e n c
f p yeopr f y
l upp Ral
l de i
l
o p brite eal
l s p i l
o o
tt
n u a t a r d p ma rh m p
uun s dfn a h h
T
a
Fs
h r
a u eo e s
hts e
oo sof eicrt w s r
pdt ps ye
cv h
mm s ds
i e s .
s cly f ses i r t
aa oe v at ne i
s p o
t o ee
r a l
o ne
i
ru obnai n a p i e n prl d m
ss g l ref i e l e Bu e e t
n
n dsi oo o
s eva ph r e r (s b u o eu af r
oo
rr
s h, rte oma i r a
f 0f y l
a en t
a mdy
h f
g t 0 i a
f 0o a.r v es l b ec d
g e0 a fsee c
i 0e me hi u e ot i e
”

ee
yoart
c0 h c
i s ,
0 e t e cc ra
f l g
hh n0, a a u d h dr l cpo r
t
et
i
S 0 b%cf y
s
a b 0l
, a mol t ne a n
a do a
cf .0, l5e c b b e 0
6v uh s
t ah cr el
ga
le h
:
r no 0 e
vofhit
t s e h i c st eu r h c
e i %r. 01 ae a n h t e mcy e hd bs a tt m
S 0 nb t dh l kn hnf
`
d r e f eli n
n .1h e , i f o eT r f aa oi cuo u
`

air provided by an air travel agent shall be deemed [Rule 32(3)]

0 s 5 n t t e g o t ppo e l t olf i
u 0i 3a rar na % c .
) r s e m
“

s 0l g
i ,
1 h ora % 0 eg se 0h sf mma
, yh t oel l i d 3k a i
l uah e
a 8 ps s f ef i 5 1 lni h h e 2a ho i e r
d 6p s sthc sv o k Tt g l meb p
`

e ur
i =e t i s
e a co r 0 yt ehn
e .of e

`
l
X t
u se 0t ktsrt r so .
) r a o3
t nn r t l
`

A p =f v 0u caapi r
a
hB0 0 e f h 2 ao p o g
T 0oh e 0b i dbe x dl c d pti s s n

reduced by
m , t a eal0 l a es s g i
0ec 2 feee ma s

`
S
o , hn ,
0 o h m t i o n
E
c 0u
, i ×00 o t h e 0 he a oel r i fr
C 1 lh
a a
l t hth ,i
8 o, u
i
gce cr g v o e
I e vw 0,0 gu ft 1at0 yb ei
r a d
V b ×, 50 nc o ,o 9 cn m v en e s %l

When premium paid is not for the risk cover exclusively

R , . 0n i g h
E d 800 0 7 0
, i
k l st
% e 2r l
o o e
r ger ci
ns T r
o
0o
1h
l 60 5 61 .
) oa0sd. f as

`
S u heo pg p ae
2 0 oc1oil t

Example 7.27 (When Rule 32(4) is not applicable)

D o , 0 e cn ein sf r c rde r
=0r bt pab r I% f mo uvi
`

`
`

N w 0 =ds,0 n f r p a hv o oe c e
`

, 0 t uly sr ,tv i h
A
s d1 o de0 0 ououya
t
Mor1 a t
n i p ne t a r t
S e
s e ]
0 ee,
gc1
oepl l t ) ffd ms u mp i s n me o
D
a g nmtsa g r o oor eu yf ei s s
`

O nn0 0 nx oa a i n i en rf o r mnt f e
O c aha , ae- i r h mi a har a f Pfs bo o i
t ) m ti c
`

G n ht 8 h d e t r w r y t F 0 r ey s i
e cs 6 ce 0 a n roo i b n 0 mo a ko cpl e sly l
:
I v
i xs xg 0
0
l
e ath onl l a ( oc0
, ut e se
i i
v vip
r o
p
T g ee en , r etFso y s mis 0 i n h Rlu p ne p
ylf r
`

ya5 b g i du
R
A e cso ch3 nba.if
i r ( n eBa 0
, me t da e
s
u
s rol s
y
t
P h ni% nc, oda i nf s i h( 0 em e ev oh f i
u
t
n ed1 ex1 st
e n oo
i g
n
k
o
t
r0
6 r
pst s
a
t
c e fo
o
f f o n
r e[ r e cdaysm h

Example 7.26 (Air Travel Agent)

i r r ( s i o o0 sve c et dye n
`

gd i b f l e c

`
y un e uyo
c f v es,l i r k b F,0o e t l
o e yu
l el
t i m a
l ca g cn r m m o o l .0 gin a s p l a o i
p fhn fe % e g e o a t 0% r h ca
pa
t m
p o ca o r 0 s envmf
i b n n
e,5 a r t sc uv
cpe
o u
u txh tur 5 fde k a ohe c o
i g0f ho n a s se l
l e h
t i
s n e c n . o o r
t c i
t t a9o cf i hi a ht
t m
f
o uyx uc0 yeor h
t s
e
a
n l e yon e yth fh
o t tofra e
r
e of+ n e t nn

`
e oc l b b o c i r vda ni s ,s n p
u mny mo0 5 p lce f i m e
t aan g aat u aI
p. ee : ulfde
l aen c 0 ant 0 7 pl i h d o n r e pc a uul w oa l e
l
a
v su
r
r e 8 su 0
, 1
, uat
h s g wze d i t )gr mo c
e
myl l
a rlo mhh o g
s r 6 s 1 1 ss e an i f f rg
i on vs aey n
e ocr oo et s r o o a nag oll B coe . iol b i
s
h rfu rms hn ms oa e e i
nke ca . erl eh f eni c

`
t oaem f

`
Go c = Gai = t s s . e, ceu ht ho l
, e p a a aoi . cm nvr t s t o o ,

APPLICABLE
s
u fg df r m c c so( nu aoc ,ra sp ea)
o afo a e e i B 0 r c i e e eg s (
h (i) f ai r e

(ii)
T elos u h h dc0 r uki f s p d e nh a n
ue rs oi m ss c a e i ca
l vseg i t t nt0 0
, ue nrie csa t hv t
a aa nab
i
e n
I n
I i s
e 0
sr
np i p sAl Wsao
t nt
I h
vr e Vm ers i .

32(4)]
ck hy , i f oy h ) u
eteot
r a
.o
r 2
1 ek i
l f n t 4
( c
l
7.20 hi hbofm MD his sa n32 a

(a)

(b)
Ta o Tr Ai
c

1.
2.
t I

`
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