Input tax credit valuation rule deems invoice value as open market value for related-party import of services under GST. Import of services by a related person is treated as supply, and where the recipient is eligible for full input tax credit, the invoice value is deemed to be the open market value under Rule 28. This applies equally to services imported from a foreign affiliate to a related domestic entity. In such cases, tax is payable under reverse charge, and the registered person in India must issue a self-invoice. If no invoice is issued, the value may be treated as nil and still deemed open market value.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit valuation rule deems invoice value as open market value for related-party import of services under GST.
Import of services by a related person is treated as supply, and where the recipient is eligible for full input tax credit, the invoice value is deemed to be the open market value under Rule 28. This applies equally to services imported from a foreign affiliate to a related domestic entity. In such cases, tax is payable under reverse charge, and the registered person in India must issue a self-invoice. If no invoice is issued, the value may be treated as nil and still deemed open market value.
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