Example

Mr. A purchased new Car in exchange of his old Car from XYZ Ltd. Mr A will have to pay Rs 800000/- along with his old car. Old car can be sold in the market for Rs 100000/-. The value of new car without exchange is Rs 10 lakh. Determine its taxable value under GST?

Answer

 In this case value shall be determined as per section 15 with rule 27 as follows:-

Where the supply of goods or services is for a consideration not wholly in money, the value of the supply shall,-
    (a) be the open market value of such supply;
    (b) if the open market value is not available under clause (a), be the sum total of consideration in money and any such further amount in money as is equivalent to the consideration not in money, if such amount is known at the time of supply.

In view of the above section Value of New Car = Rs. 10 lakh (i.e Open market value of New car).