Related-party valuation under GST: rules set taxable value; corporate guarantees taxed at higher of prescribed rate or actual consideration. Rule 28 prescribes sequential valuation for supplies between distinct or related persons: first open market value; if unavailable, value of like kind and quality; if still indeterminable, apply Rule 30 (cost plus markup) or Rule 31 (reasonable means). If goods are supplied for further resale, supplier may opt to use a specified percentage of the recipient's price to non related customers. Where recipient has full input tax credit, invoice value is deemed open market value. Rule 28(2) deems corporate guarantee services to be valued at either a prescribed percentage per annum of the guarantee amount or actual consideration, whichever is higher, with invoice value deemed where full ITC exists.
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.
Related-party valuation under GST: rules set taxable value; corporate guarantees taxed at higher of prescribed rate or actual consideration.
Rule 28 prescribes sequential valuation for supplies between distinct or related persons: first open market value; if unavailable, value of like kind and quality; if still indeterminable, apply Rule 30 (cost plus markup) or Rule 31 (reasonable means). If goods are supplied for further resale, supplier may opt to use a specified percentage of the recipient's price to non related customers. Where recipient has full input tax credit, invoice value is deemed open market value. Rule 28(2) deems corporate guarantee services to be valued at either a prescribed percentage per annum of the guarantee amount or actual consideration, whichever is higher, with invoice value deemed where full ITC exists.
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