supply to related party

[Kaustubh Karandikar]

XYZ is manufacturing and supplying moulds exclusively to related party. What should be the basis for valuation for this transaction?

AI Summary

Valuation for GST on Moulds: Use Open Market Value per Rule 28; Invoice Value Valid if ITC Fully Eligible. A query was raised regarding the valuation basis for Goods and Services Tax (GST) when a company, referred to as XYZ, manufactures and supplies moulds exclusively to a related party. The response provided suggests using the open market value as per rule 28. If the recipient is fully eligible for Input Tax Credit (ITC) and does not use the moulds for exempted supplies, the declared invoice value can be considered the open market value and thus the taxable value.