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Determination of Value in respect of certain Supplies [Rule 32 of CGST Rules, 2017]

Notwithstanding anything contained in the provisions of this Chapter, the value in respect of supplies specified below shall, at the option of the supplier, be determined in the manner provided hereinafter.

1. The Value of the Supply of Services in relation to Booking of Tickets for Travel by Air provided by an Air Travel Agent  [Rule 32(3)]

(a) In case of Domestic Booking :   5% of the Basic Fare

(b) In case of International Booking :        10% of the Basic Fare.

Explanation.—For the purposes of this sub-rule, the expression ‘Basic Fare” means that part of the Air Fare on which Commission is normally paid to the Air Travel Agent by the Airlines.

2. The Value of Supply of Services in relation to Life Insurance Business [Rule 32(4)]

(a) Where the amount allocated for investment, or savings on behalf of the policy holder is intimated to the policy holder at the time of supply of service

The gross premium charged from a policy holder reduced by the amount allocated for investment, or savings on behalf of the policy holder.

(b) in case of single premium annuity policies other than (a)

10% of single premium charged from the policy
holder; or

(c) in all other cases

25% of the premium charged from the policy holder in the first year and 12.5% of the premium charged from the policy holder in subsequent years:
Provided that nothing contained in this sub-rule shall apply where the entire premium paid by the policy holder is only towards the risk cover in life insurance.

3. Where a Taxable Supply is provided by a person dealing in Buying And Selling Of Second Hand Goods i.e., used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods [Rule 32(5)]

The value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored:
Provided that the purchase value of goods repossessed from a defaulting borrower, who is not registered, for the purpose of recovery of a loan or debt shall be deemed to be the purchase price of such goods by the defaulting borrower reduced by five percentage points for every quarter or part thereof, between the date of purchase and the date of disposal by the person making such repossession.

4. The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is redeemable against a supply of goods or services or both. [Rule 32(6)]

It shall be equal to the money value of the goods or services or both redeemable against such token, voucher, coupon. or stamp

5. The Value of Taxable Services provided by such class of service providers as may be notified by the Government, on the recommendations of the Council, as referred to in paragraph 2 of Schedule I of the said Act between distinct persons as referred to in section 25. where input tax credit is available. [Rule 32(7)]

... It shall be deemed to be NIL

Value of Supply in case of Lottery, Betting, Gambling and Horse Racing. [Rule 31A of CGST Rules, 2017] GST - Ready Reckoner in India

Value of Supply of Services in case of pure Agent [Rule 33 of CGST Rules, 2017]


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