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

Packages of a specified tobacco product declare two retail sale prices: Rs 120 and Rs 130 on the same package. Under Rule 31D, which price is deemed to be the retail sale price?

Rs 130 is the deemed retail sale price. The explanation to Rule 31D says that where more than one retail sale price appears on a package of specified goods, the maximum of those prices is treated as the retail sale price.

  1. ARs 120, the lower price
  2. BRs 125, the average of the two
  3. CRs 130, the maximum of the declared pricesCorrect
  4. DThe price actually charged to the buyer, whatever it is

Explanation

The Explanation to Rule 31D provides that where more than one retail sale price is declared on a package, the maximum is deemed to be the retail sale price. The lower or average price is not used.

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