When the consideration for a supply is not in money or not solely in money, the following values to be taken sequentially to determine the taxable value: –
- Open Market Value of such supply.
- Total money value of the supply i.e. monetary consideration plus money value of the non-monetary consideration.
- Value of supply of like kind and quality.
- Value of supply based on cost i.e. cost of supply plus 10% markup
- By using reasonable means consistent with principles & general provisions of GST law. (Best Judgement method).
Open Market Value means
- The full value in money excluding taxes under GST laws;
- payable by a person to obtain such supply at the time when supply being valued is
- provided such supply is between unrelated persons; and
- price is the sole consideration for such supply.
Supply of like kind & quality means any other supply made under similar circumstances that are same or closely resembles in respect of characteristics, quality, quantity, functionality, reputation to the supply being valued.
- Where a new phone is supplied for Rs. 20000/- along with the exchange of an old phone and if the price of the new phone without exchange is Rs.24000/-, the open market value of the new phone is Rs 24000/-.
- Where a laptop is supplied for Rs. 40000/- along with a barter printer that is manufactured by the recipient and the value of the printer known at the time of supply is Rs. 4000/- but the open market value of the laptop is not known, the value of the supply of laptop is Rs. 44000/-.