TaxTMI 
TaxTMI 
Hi If the Company A has recevied the actual consideration from related party (Let say 1000 Rs) for providing services. Related Party is eligible for Full ITC then also whether the Company A can take benefit of Third Proviso to Rule 28 and pay GST at any value including NIL Value
Benefit of Third Proviso to Rule 28 in case of actual consideration
17 Oct 2024 
3 Replies 
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Third Proviso to Rule 28 allows supplier to declare GST value, including nil, if recipient is eligible for full ITC.
Where services are supplied to a related party that is eligible for full input tax credit, the supplier may invoke the Third Proviso to Rule 28 and declare GST on any value, including nil, despite actual consideration having been received; a respondent queried whether the Second Proviso to Rule 28(1) might instead apply. (AI Summary)
Where services are supplied to a related party that is eligible for full input tax credit, the supplier may invoke the Third Proviso to Rule 28 and declare GST on any value, including nil, despite actual consideration having been received; a respondent queried whether the Second Proviso to Rule 28(1) might instead apply. (AI Summary)