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

A package of cigarettes declares two retail sale prices, ₹210 and ₹230, on the same package. Under Rule 31D, which retail sale price is used for valuation?

The retail sale price used is ₹230. Rule 31D provides that where more than one retail sale price is declared on the package of specified goods, the maximum of those prices is deemed to be the retail sale price for valuation.

  1. A₹230, the maximum of the declared pricesCorrect
  2. B₹210, the minimum of the declared prices
  3. C₹220, the average of the declared prices
  4. DThe price actually charged to the buyer

Explanation

Explanation (c) to Rule 31D states that where more than one retail sale price is declared on a package of specified goods, the maximum of them is deemed to be the retail sale price. So ₹230 is used. The average and the minimum have no basis in the rule.

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