Chapter - IV of CGST Rules, 2017
DETERMINATION OF VALUE OF SUPPLY
RULE 29. Value of supply of goods made or received through an agent (corresponding section 15)
The value of supply of goods between the principal and his agent shall-
(a) be the open market value of the goods being supplied, or at the option of
the supplier, be ninety per cent. of the price charged for the supply of goods
of like kind and quality by the recipient to his customer not being a related
person, where the goods are intended for further supply by the said recipient.
Illustration: A principal supplies groundnut to his agent and the agent is
supplying groundnuts of like kind and quality in subsequent supplies at a price
of five thousand rupees per quintal on the day of the supply. Another
independent supplier is supplying groundnuts of like kind and quality to the
said agent at the price of four thousand five hundred and fifty rupees per
quintal. The value of the supply made by the principal shall be four thousand
five hundred and fifty rupees per quintal or where he exercises the option, the
value shall be 90 per cent. of five thousand rupees i.e., four thousand five
hundred rupees per quintal.
(b) where the value of a supply is not determinable under clause (a), the same
shall be determined by the application of rule 30 or
rule 31 in that order.