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𝗚𝗦𝗧 𝗩𝗮𝗹𝘂𝗲 𝗼𝗳 𝗦𝘂𝗽𝗽𝗹𝘆 – 𝗣𝗮𝗿𝘁 𝟮

Jethalal runs 𝗚𝗮𝗱𝗮 𝗘𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰𝘀,

a growing electronics business in Chennai.

During a business meeting, Taarak Mehta raises an important question:

“𝗔𝗿𝗲 𝘆𝗼𝘂 𝗰𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗶𝗻𝗴 𝗚𝗦𝗧 𝗼𝗻 𝘁𝗵𝗲 𝗰𝗼𝗿𝗿𝗲𝗰𝘁 𝘃𝗮𝗹𝘂𝗲 𝗼𝗳 𝗲𝘃𝗲𝗿𝘆 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻?”

Jethalal discovers that GST valuation involves much more than the selling price!

𝟭𝟭 𝗚𝗦𝗧 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗦𝗶𝘁𝘂𝗮𝘁𝗶𝗼𝗻𝘀 𝗘𝘃𝗲𝗿𝘆 𝗘𝗻𝘁𝗿𝗲𝗽𝗿𝗲𝗻𝗲𝘂𝗿 𝗦𝗵𝗼𝘂𝗹𝗱 𝗥𝗲𝘃𝗶𝗲𝘄

𝟭. 𝗕𝗿𝗮𝗻𝗰𝗵 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿𝘀 – 𝗥𝘂𝗹𝗲 𝟮𝟴

Jethalal transfers goods from Chennai to Bengaluru.

Where the receiving branch is eligible for full ITC,

the declared invoice value is deemed acceptable under Rule 28.

𝟮. 𝗙𝗼𝗿𝗲𝗶𝗴𝗻 𝗥𝗲𝗹𝗮𝘁𝗲𝗱-𝗣𝗮𝗿𝘁𝘆 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀

A foreign affiliate provides management services.

Where full ITC is available, even NIL valuation may be accepted under specified conditions.

𝟯. 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗚𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲𝘀

Gada Electronics guarantees a sister company's bank loan.

Special GST valuation rules apply, generally involving 𝟭% 𝗽𝗲𝗿 𝗮𝗻𝗻𝘂𝗺 𝗼𝗳 𝘁𝗵𝗲 𝗴𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲𝗱 𝗮𝗺𝗼𝘂𝗻𝘁 𝗼𝗿 𝗮𝗰𝘁𝘂𝗮𝗹 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻, 𝘄𝗵𝗶𝗰𝗵𝗲𝘃𝗲𝗿 𝗶𝘀 𝗵𝗶𝗴𝗵𝗲𝗿.

𝟰. 𝗠𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗚𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲𝘀

When several entities provide guarantees,

GST valuation depends on their respective guarantee obligations.

𝟱. 𝗜𝗻𝘃𝗼𝗶𝗰𝗲 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁𝘀

Bhide negotiates and gets a discount.

GST treatment depends on whether prescribed discount conditions are satisfied.

𝟲. 𝗣𝗼𝘀𝘁-𝗦𝘂𝗽𝗽𝗹𝘆 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁𝘀

Later discounts require appropriate agreements, invoice linkage and applicable ITC adjustments.

𝟳. 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗮𝗹-𝗔𝗴𝗲𝗻𝘁 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀

Goods supplied through an agent may require open-market valuation or the prescribed 90% option.

𝟴. 𝗣𝘂𝗿𝗲-𝗔𝗴𝗲𝗻𝘁 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀

Qualifying reimbursements can be excluded from taxable value.

𝟵. 𝗙𝗿𝗲𝗶𝗴𝗵𝘁 𝗖𝗵𝗮𝗿𝗴𝗲𝘀

If Jethalal undertakes delivery, freight generally forms part of taxable value.

𝟭𝟬. 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗦𝘁𝗮𝗺𝗽 𝗗𝘂𝘁𝘆

Amounts recovered as a qualifying pure agent may be excluded.

𝟭𝟭. 𝗘𝘅𝗽𝗼𝗿𝘁 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻

Export invoices require the applicable Customs-notified exchange rate for GST valuation.

𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆

𝗜𝗻𝗰𝗼𝗿𝗿𝗲𝗰𝘁 𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗰𝗮𝗻 𝗰𝗿𝗲𝗮𝘁𝗲 𝗚𝗦𝗧 𝗱𝗲𝗺𝗮𝗻𝗱𝘀, 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗮𝗻𝗱 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗱𝗶𝘀𝗽𝘂𝘁𝗲𝘀.

𝗥𝗲𝘃𝗶𝗲𝘄 𝗯𝗿𝗮𝗻𝗰𝗵 𝘁𝗿𝗮𝗻𝘀𝗳𝗲𝗿𝘀, 𝗴𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲𝘀, 𝗱𝗶𝘀𝗰𝗼𝘂𝗻𝘁𝘀, 𝗿𝗲𝗶𝗺𝗯𝘂𝗿𝘀𝗲𝗺𝗲𝗻𝘁𝘀 𝗮𝗻𝗱 𝗲𝘅𝗽𝗼𝗿𝘁 𝗶𝗻𝘃𝗼𝗶𝗰𝗲𝘀 𝗯𝗲𝗳𝗼𝗿𝗲 𝘆𝗼𝘂𝗿 𝗻𝗲𝘅𝘁 𝗚𝗦𝗧 𝗳𝗶𝗹𝗶𝗻𝗴.

𝗖𝗔 𝗦𝗮𝗶𝗹𝗲𝘀𝗵 𝗕𝗵𝗮𝗻𝗱𝗮𝗿𝗶

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