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Valuation of stock transfer (FG) Manufacturing place to warehouse

29 October 2018

We have being stock transfer from our plant to warehouse (other state) (Finished Goods), now we have adapted the value cost of production. is it ok or we have to adapet customer price for GST payment.

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Rajeesh 123 (36 Points)
Replied 30 October 2018

NO.

Under CGST RULE 28. Value of supply of goods or services or both between distinct or related persons, other than through an agent.-

The value of the supply of goods or services or both between
distinct persons as specified in sub-section (4) and (5) of section 25 or
where the supplier
and recipient are related, other than where the supply is made through an agent, shall-

(a) be the open market value of such supply;

(b) if the open market value is not available, be the value of supply of goods or
services of like kind and quality;

(c) if the value is not determinable under clause (a) or (b), be the value as determined
by the application of rule 30 or rule 31, in that order:

Provided that where the goods are intended for further supply as such by the
recipient, the value shall, at the option of the supplier, be an amount equivalent to ninety
percent 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:

Provided further that where the recipient is eligible for full input tax credit, the value
declared in the invoice shall be deemed to be the open market value of the goods or services.