Chapter - IV of CGST Rules, 2017
DETERMINATION OF VALUE OF SUPPLY
RULE 29. Value of supply of goods made or
received through an agent
2(05)
“agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;
(corresponding section 15)
The value of supply of goods between the principal and his agent
2(05)
“agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;
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
2(05)
“agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;
and the agent
2(05)
“agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;
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
2(05)
“agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;
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.