What Will be Value of Supply When Payment is Received Partly in Cash and Partly in Goods or Wholly in Goods?

Value of Supply when payment against such supply is not received wholly in cash shall be calculated through below mentioned method sequentially

For better under understanding let’s take an example

Mr. A sold one laptop in exchange with Rs. 40000 cash & 1 Printer whose value at the time of supply is 4000. However, Market value of laptop is Rs. 50,000.

As per Rule 27 of CGST Rules,

(a) Value of supply shall be equal to open market value of same supply.

Here, Value of supply shall be Rs. 50,000 irrespective of the fact that payment received is not equal to 50,000.

(b) If market value is not available under clause (a) then value shall be Payment received in money + Monetary value of Goods if value of such goods is known at the time of supply.

Here, for example if Market value of laptop 50,000 is not available then value of supply will be Consideration received in money i.e. 40000 + Monetary value of goods i.e. 4000 = 44,000/-

(c) If value cannot determine under clause (a) & (b) both then value of supply shall be value of similar goods and quality.

If Laptop value is not available at the time of supply and Value of printer is also not known but value of similar laptop with similar quality but different brand is available and value of such laptop is 55,000 then value of supply will be Rs. 55,000/-

(d) If value cannot determine under (a), (b), (c), (d) then value of supply shall be Consideration received in money + monetary value of Non-Money consideration determined under Rule 30 & 31.

(e) As Per Rule 30, When value of supply cannot determine under any above rule then it shall be 110% of cost of production or manufacture or Cost of acquisition such goods or service.

If laptop value is not available at the time of supply, value of printer and similar laptop value is also not available but originally laptop was acquired in Rs. 50,000/- then according to rule value of supply shall be 55,000 (i.e. 110% of acquired value i.e. 50000)

(f) As per Rule 31, If value of supply cannot determine under any above rule then it shall be determining using reasonable means consistent with General provision of Section 15 of CGST Act and provision of CGST Rules.

If value cannot determine through any above method, then supplier can use any reasonable method as per his convenience but it should be in consistent with GST act and rules.