How to compute Value of supply of goods made or received through an agent under GST

Rule-29 of CGST Rules 2017

29. Val­ue of sup­ply of goods made or received through an agent.-

The val­ue of sup­ply of goods between the prin­ci­pal and his agent shall-

• be the open mar­ket val­ue of the goods being sup­plied, or at the option of the sup­pli­er, be nine­ty per 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 and the agent 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 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.

• 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