TMI Blog2018 (6) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso to Rule 28, thus, is clear that where goods are supplied to a recipient for further supply as such, the valuation of these goods when transferred from the supplier to the recipient may, at the option of the supplier, be determined at 90% of the price that will be charged by the recipient to its customer, not being a related person - Whether or not the Supplier avails of this option is solely the discretion of the Supplier. The Second Proviso is applicable for both, goods further supplied to non related customers and to goods used in and for the course of business. It is stated that the value declared in the invoices shall be deemed to be the open market value of the goods. The expression “where the recipient is eligible for ful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be valued in terms of the Cost Price under the Second Proviso to Rule 28 of CGST Rules, 2017, instead of 90% of MRP as required under the First Proviso of the same Rule. Advance Ruling is admissible on this question under Section 97(2)(c) of the CGST/ WBGST Act, 2017 (hereinafter referred to as the GST Act ). The officer concerned raises no objection to admission of the Application. The Applicant declares that question raised is not already decided or pending in any proceedings under the GST Act. The Application is, therefore, admitted. 2. The Applicant submits that so far the value of the trading goods supplied to branches in states other than West Bengal is being determined at 90% of the MRP of the goods in terms of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a supply to a distinct person shall be the open market value, if available, of such supply. The First Proviso states that Provided that where the goods are intended for further supply as such by the recipients, the value shall, at the option of the supplier, be an amount equivalent to 90% 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 . The Second Proviso to Rule 28 states 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. As input tax credit is not available unless there is an invoice or document of like nature [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods used in and for the course of business. It is stated that the value declared in the invoices shall be deemed to be the open market value of the goods. 7. Chapter V of the GST Act in Sections 16 to 21 are related to Input Tax Credit. The independently registered business establishments in states other than West Bengal, referred to as branches with Head Office in West Bengal, are eligible to avail of Input Tax Credit in terms of Section 16 of GST Act. Again, as per Section 17(1) where the goods (or services, or both) are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his bus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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