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CMA Final · Indirect Tax Laws and Practice · Valuation under GST

A company supplies the same specified tobacco product in packs declared Rs 200 for sale in Area A and Rs 236 for sale in Area B. Under Rule 31D, how is the retail sale price determined for valuation?

Each price applies to its own area. Rule 31D provides that where different packages carry different retail sale prices for different areas, each declared price is the retail sale price for goods meant for sale in that area.

  1. AThe higher price of Rs 236 applies to supplies in both areas
  2. BThe lower price of Rs 200 applies to supplies in both areas
  3. CEach declared price applies to goods intended to be sold in its respective areaCorrect
  4. DThe average of Rs 218 applies to both areas

Explanation

Explanation (e) states that where different retail sale prices are declared on different packages for different areas, each price is the retail sale price for goods intended to be sold in the area to which it relates. The maximum-price rule in (c) applies only to multiple prices on one package.

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