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

A pan masala package declares two retail sale prices: Rs 60 and Rs 55, both printed on the same package. Under Rule 31D, which price is deemed the retail sale price?

Rs 60 is the deemed retail sale price, because Rule 31D states that where more than one retail sale price is declared on a package of specified goods, the maximum of those prices is treated as the retail sale price.

  1. ARs 55, the lower of the two
  2. BRs 57.50, the average of the two
  3. CRs 60, the higher of the twoCorrect
  4. DRs 55, as it is the last declared

Explanation

The Explanation to Rule 31D provides that where more than one retail sale price is declared on the package, the maximum of such prices is deemed the retail sale price. Hence Rs 60. Averaging or choosing the lower is not provided.

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