Value of supply not determined under according to section 15(1) [ Section 15(4) ] - GST Ready Reckoner - GST

Value of supply not determined under according to section 15(1) [ Section 15(4) ] Section 15(4) of CGST Act 2017 where the value of the supply of goods or services or both cannot be determined under section 15(1), the same shall be determined in such manner as may be prescribed.(see the definition of prescribed ), which means as stipulated in the rules for valuation, Rules 27 to 31 of the CGST Rules provide the mechanism to determine value in all such scenarios. Determination of Value of Supply when consideration is not solely in money [Rule 27 of CGST rules] Value of supply of goods or services or both between distinct or related persons, other than through an agent [Rule 28 of CGST Rules] Determination of Value of supply of goods made or received through an agent [Rule 29 of CGST Act] Manner of valuation prescribed for specified cases [ Rule 30 31 of CGST Rules ] Example : Arya purchases a Samsung television set costing Rs. 85,000 from an electronic shop, in exchange of her existing TV set. After an hour of bargaining, the shop manager agrees to accept Rs. 78,000 instead of his quote of Rs. 81,000, as he would still be in a profitable position (the old TV can be sold for Rs. 8,000). Ans. Where the price is not the sole consideration for the supply, the open market value would be the value of the supply. Therefore, Rs. 85,000 would be the value of the supply.