Rule 28 - Value of supply of goods or services or both between distinct or related persons, other than through an agent

Valuation rules for supplies between distinct or related persons: open market, like-kind, rules 30/31, 90% option, 1% p.a. guarantee

For supplies between distinct or related persons (excluding agent-mediated supplies), value is determined by: open market value; if unavailable, value of like kind and quality; if still indeterminable, value under rules 30 or 31. If goods are intended for onward supply by the recipient, the supplier may opt to value them at 90% of the price charged by the recipient to non-related customers. Where the recipient is eligible for full input tax credit, the invoice value is deemed to be the open market value. For related-party corporate guarantees provided in India, value is deemed 1% per annum of the guarantee amount or actual consideration, whichever is higher, with the invoice value deemed when the recipient has full input tax credit.