Chapter - IV of CGST Rules, 2017
DETERMINATION OF VALUE OF SUPPLY
RULE 32. Determination of value in respect of certain supplies (corresponding section 15)
(1) Notwithstanding anything contained in the provisions of this Chapter, the
value in respect of supplies specified below shall, at the option of the
supplier, be determined in the manner provided hereinafter.
(2) The value of supply of services in relation to the purchase or sale of
foreign currency, including money changing, shall be determined by the supplier
of services in the following manner, namely:-
(a) for a currency, when exchanged from, or to, Indian Rupees, the value shall
be equal to the difference in the buying rate or the selling rate, as the case
may be, and the Reserve Bank of India reference rate for that currency at that
time, multiplied by the total units of currency:
Provided that in case where the Reserve Bank of India reference rate for a
currency is not available, the value shall be one per cent. of the gross amount
of Indian Rupees provided or received by the person changing the money:
Provided further that in case where neither of the currencies exchanged is
Indian Rupees, the value shall be equal to one per cent. of the lesser of the
two amounts the person changing the money would have received by converting any
of the two currencies into Indian Rupee on that day at the reference rate
provided by the Reserve Bank of India.
Provided also that a person supplying the services may exercise the option to
ascertain the value in terms of clause (b) for a financial year and such option
shall not be withdrawn during the remaining part of that financial year.
(b) at the option of the supplier of services, the value in relation to the
supply of foreign currency, including money changing, shall be deemed to be-
(i) one per cent. of the gross amount of currency exchanged for an amount up to
one lakh rupees, subject to a minimum amount of two hundred and fifty rupees;
(ii) one thousand rupees and half of a per cent. of the gross amount of currency
exchanged for an amount exceeding one lakh rupees and up to ten lakh rupees; and
(iii) five thousand and five hundred rupees and one tenth of a per cent. of the
gross amount of currency exchanged for an amount exceeding ten lakh rupees,
subject to a maximum amount of sixty thousand rupees.
(3) The value of the supply of services in relation to booking of tickets for
travel by air provided by an air travel agent shall be deemed to be an amount
calculated at the rate of five per cent. of the basic fare in the case of
domestic bookings, and at the rate of ten per cent. of the basic fare in the
case of international bookings of passage for travel by air.
Explanation.- For the purposes of this sub-rule, the expression 'basic fare'
means that part of the air fare on which commission is normally paid to the air
travel agent by the airlines.
(4) The value of supply of services in relation to life insurance business shall
be,-
(a) the gross premium charged from a policy holder reduced by the amount
allocated for investment, or savings on behalf of the policy holder, if such an
amount is intimated to the policy holder at the time of supply of service;
(b) in case of single premium annuity policies other than (a), ten per cent. of
single premium charged from the policy holder; or
(c) in all other cases, twenty five per cent. of the premium charged from the
policy holder in the first year and twelve and a half per cent. of the premium
charged from the policy holder in subsequent years:
Provided that nothing contained in this sub-rule shall apply where the entire
premium paid by the policy holder is only towards the risk cover in life
insurance.
(5) Where a taxable supply is provided by a person dealing in buying and selling
of second hand goods i.e., used goods as such or after such minor processing
which does not change the nature of the goods and where no input tax credit has
been availed on the purchase of such goods, the value of supply shall be the
difference between the selling price and the purchase price and where the value
of such supply is negative, it shall be ignored:
Provided that the purchase value of goods repossessed from a defaulting
borrower, who is not registered, for the purpose of recovery of a loan or debt
shall be deemed to be the purchase price of such goods by the defaulting
borrower reduced by five percentage points for every quarter or part thereof,
between the date of purchase and the date of disposal by the person making such
repossession.
(6) The value of a token, or a voucher, or a coupon, or a stamp (other than
postage stamp) which is redeemable against a supply of goods or services or both
shall be equal to the money value of the goods or services or both redeemable
against such token, voucher, coupon, or stamp.
(7) The value of taxable services provided by such class of service providers as
may be notified by the Government, on the recommendations of the Council, as
referred to in paragraph 2 of Schedule I
of the said Act between distinct
persons as referred to in section 25, where input tax credit is available, shall
be deemed to be NIL.