Valuation of goods

[Rajesh Kumar]

Respected experts ,

I have a issue that department intercepted a truck loaded with cigarettes which was without Invoice and E way bill.

Now, they are calculating duty and penalty on the basis of MRP of the products which is in actual triple times of actual sale price.

Please guide whether they are doing right by calculating on MRP basis ?

What is the actual and practical method as per GST provisions for this valuation?

AI Summary

Valuation under GST may be based on MRP when goods move without invoice, shifting the burden to prove transaction value.
Authorities may compute GST and penalties on MRP and deny deductions for other statutory levies or dealer margin when goods are transported without invoice or e-way bill, presuming intent to evade; the taxpayer bears the burden to prove transaction value under the valuation provisions with trustworthy evidence, and absence of a named recipient increases risk of refusal of deductions and broader investigations.