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

A pan masala pack carries two retail sale prices printed on it, Rs 120 and Rs 150. Under Rule 31D, which price is deemed to be the retail sale price for valuation?

Where a package of specified goods declares more than one retail sale price, Rule 31D deems the maximum of them to be the retail sale price. Hence Rs 150 is used, and the tax is then backed out of this figure.

  1. ARs 120, the lower price
  2. BRs 135, the average of the two prices
  3. CRs 150, the maximum of the declared pricesCorrect
  4. DRs 120 or Rs 150 at the option of the supplier

Explanation

Explanation (c) to Rule 31D states that where more than one retail sale price is declared on a package, the maximum of such prices is deemed to be the retail sale price. No averaging or choice is permitted.

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