GST Valuation Rules for Related Party Transactions: Rule 28 Explains Open Market Value, Corporate Guarantees, and Intra-Group Deals

The valuation rules under the GST framework for transactions between related or distinct persons, excluding agents. Rule 28 of the CGST Rules specifies that the value of supply should first consider the open market value, followed by the value of goods or services of like kind and quality, and if these are unavailable, the value is determined using Rule 30 or 31. For corporate guarantees provided without consideration, the value is 1% of the guarantee or actual consideration, whichever is higher. The document also addresses taxability and valuation issues related to corporate guarantees and intra-group transactions, including scenarios involving foreign entities and related domestic entities.

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