Clarification on valuation of supply of import of services by a related person where recipient is eligible to full input tax credit

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....2024-GST, dated 26.06.2024 issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs. 2. Circular No. REV03-12039(31)/63/2023-COMM, dated 20/07/2023. *** As per S.No. 4 of Schedule I of the Andhra Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as the 'APGST Act'), import of services by a person from a related person or from any of his other establishments outside India, in the course or furtherance of business, is to be treated as supply even if made without consideration. 2. Representations have been received from trade and industry stating that demands are being raised by some of the field formations against the registered persons seeki....

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.... specified in sub-section (4) and (5) of section 25 or where the supplier and recipient are related, other than where the supply is made through an agent, shall- (a) be the open market value of such supply; (b) if the open market value is not available, be the value of supply of goods or services of like kind and quality; (c) if the value is not determinable under clause (a) or (b), be the value as determined by the application of rule 30 or rule 31, in that order: Provided that where the goods are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to ninety percent of the price charged for the supply of goods of like kind and qual....

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.... said BO, the value of such services may be deemed to be declared as Nil by HO to BO, and may be deemed as open market value in terms of second proviso to rule 28(1) of APGST Rules. 3.5 The second proviso to Rule 28(1) of APGST Rules, is applicable in all the cases involving supply of goods or services or both between the distinct persons as well as the related persons, in cases where full ITC is available to the recipient. Accordingly, it is evident that the clarification which has been issued vide State Circular No. REV03-12039(31)/63/2023-COMM, dated 20/07/2023 in respect of supplies of services between distinct persons in cases where full ITC is available to the recipient, is equally applicable in respect of import of services betwee....