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Valution of transaction

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Rajkumar Gutti

761 Points Posted on 23 March 2022

Under same pan No. We have multiple GST registration No. in different state of India.
we have sold Goods under Maharashtra GSTN No. to our branch
Tamilnadu GSTN No. Value Rs.150000/- on 20/3/22.
On 22/03/22 same goods & same quantity we sold in Tamilnadu other
party ( not related) valu Rs.200000/-

My question is -
Is distnct party valuation question
arises .Bcoz there is difference of Rs. 50000/- in value ( same qty.same goods)

Is there any contravention of Gst law.

Please guide us elborately; with relevant Gst section.

Replies (2)

Quick Summary

This discussion clarifies GST valuation rules when dealing with multiple GST registrations under the same PAN but in different states. It addresses whether a significant price difference for identical goods sold to a branch versus an unrelated third party constitutes a contravention of GST law. The consensus is that for distinct parties, the declared invoice value is generally accepted as the open market value, provided the recipient is eligible for input tax credit, and no contravention of GST law occurs.

CA Puja Sharma

Chartered Accountant

3528 Points Posted on 23 March 2022

No, the question will arise here.

In the case of distinct parties, whatever valuation you take will be accepted because the recipient party will take that much GST credit only when making the further supply of goods.

Mohd Salman Ansari

Practicing Chartered Accountant

24 Points Posted on 24 March 2022

As per Rule 28, If distinct party is eligible to take Input tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services. There is no contravention of law.