2018 (6) TMI 72

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....hes in other states. Advance Ruling has been sought on whether such goods supplied to the branches in states other than West Bengal can be valued in terms of the Cost Price under the Second Proviso to Rule 28 of CGST Rules, 2017, instead of 90% of MRP as required under the First Proviso of the same Rule. Advance Ruling is admissible on this question under Section 97(2)(c) of the CGST/ WBGST Act, 2017 (hereinafter referred to as "the GST Act"). The officer concerned raises no objection to admission of the Application. The Applicant declares that question raised is not already decided or pending in any proceedings under the GST Act. The Application is, therefore, admitted. 2. The Applicant submits that so far the value of the t....

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....istinct persons, and provisions of Rule 28 will be applicable for valuation of such supplies. 4. Rule 28 provides that the value of a supply to a distinct person shall be the open market value, if available, of such supply. The First Proviso states that "Provided that where the goods are intended for further supply as such by the recipients, the value shall, at the option of the supplier, be an amount equivalent to 90% of the price charged for the supply of goods of like kind and quality by the recipient to his customer, not being a related person". The Second Proviso to Rule 28 states "Provided further, that where the recipient is eligible for full input tax credit, the value declared in the Invoice shall be deemed to be the open ....

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....upplied as such. In other words, the Second Proviso is applicable for both, goods further supplied to non related customers and to goods used in and for the course of business. It is stated that the value declared in the invoices shall be deemed to be the open market value of the goods. 7. Chapter V of the GST Act in Sections 16 to 21 are related to Input Tax Credit. The independently registered business establishments in states other than West Bengal, referred to as "branches" with Head Office in West Bengal, are eligible to avail of Input Tax Credit in terms of Section 16 of GST Act. Again, as per Section 17(1) where the goods (or services, or both) are used by the registered person partly for the purpose of any business and partly for....