Skip to content

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

Under Rule 31D of the CGST Rules, 2017 (RSP-based valuation), the value of supply of specified goods such as pan masala or cigarettes is deemed to be:

For goods specified in Rule 31D, such as pan masala and cigarettes, the value of supply is deemed to be the declared retail sale price minus the tax applicable. Because the RSP already includes all taxes, the tax component is removed to reach the taxable value.

  1. AThe transaction value between supplier and recipient, ignoring the printed price
  2. BThe retail sale price declared on the goods, less the amount of tax as applicableCorrect
  3. CThe retail sale price declared on the goods, with the tax included
  4. DThe cost of production plus 10% profit

Explanation

Rule 31D says that, notwithstanding the other valuation provisions, the value of the listed goods is deemed to be the declared retail sale price less the applicable tax. The RSP is tax-inclusive, so tax must be taken out. Treating RSP itself as value would double count the tax.

Did you get it right without looking?

One question tells you little. A timed set on Valuation under GST shows your real accuracy, how long you take and where you lose marks.

Practise Valuation under GSTFree diagnostic mock

More Valuation under GST questions