Valuation of GST under special cases

Valuation of GST which cannot be determined under Sub Section (1) of GST Law


Valuation of GST under special casesHow to assess the value of supply to derive GST under the transactions of a pure agent? How to calculate the value of GST supplies, if consideration under business transaction is money? How to assess the value of transaction of an insurer to calculate GST? Who is the authority under GST to assess the business transitions of an Air Travel Agent for GST payment? How does the valuation effect for distribution or sale of Lottery under GST Law?

Some of the categories under supply of services cannot be valued to derive GST under sub-section (1), shall be determined in such manner as may be prescribed in the rules. Let us discuss those transactions:

If the consideration of transaction under Goods and Services is money either partly or wholly, the valuation for GST Tax is not possible under sub-sec (1) and is assessed under separate section of GST Law.

If the supplier and recipient of supply are related, the valuation of supply of goods or services is not possible under sub-section 1. The relationship could be blood relationship, parent company/sister concern etc. like one or more partners are involved in both supplier and recipient. (Under import, special valuation branch SVB assesses the value of imported goods)

If there is doubt on the truth or accuracy of the transaction value declared by the supplier; the GST valuation is impossible under sub section 1.

Valuation of GST under sub-sec 1 is not possible under any business transactions undertaken by a pure agent, money changer, insurer, air travel agent and distributor or selling agent of lottery.

Value assessment under sub-section 1 of GST Law is not possible, if such other supplies as may be notified by the Central or a State Government in this behalf on the recommendation of the Council.


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