Chapter - IV of CGST Rules, 2017
DETERMINATION OF VALUE OF SUPPLY
RULE 35. Value of supply inclusive of integrated tax, central tax, State tax, Union territory tax (corresponding section 15)
Where the value of supply is inclusive of integrated tax or, as the case may be,
central tax, State tax, Union territory tax, the tax amount shall be determined
in the following manner, namely,-
Tax amount = (Value inclusive of taxes X tax rate in % of IGST or, as the case
may be,CGST, SGST or UTGST) / (100+ sum of tax rates, as applicable, in %)
Explanation.- For the purposes of the provisions of this Chapter, the
expressions-
(a) 'open market value' of a supply of goods or services or both means the full
value in money, excluding the integrated tax, central tax, State tax, Union
territory tax and the cess payable by a person in a transaction, where the
supplier and the recipient of the supply are not related and the price is the
sole consideration, to obtain such supply at the same time when the supply being
valued is made;
(b) 'supply of goods or services or both of like kind and quality' means any
other supply of goods or services or both made under similar circumstances that,
in respect of the characteristics, quality, quantity, functional components,
materials, and the reputation of the goods or services or both first mentioned,
is the same as, or closely or
substantially resembles, that supply of goods or services or both.