Value of Supply of Goods or Services between Related Party transaction Under GST

In case of supply between such related person under GST, value of supply will be:

The Open Market Value (OMV) of such supply. OMV will be the amount which is fairly available in open market.

If the open market value is not available, it will be the value of supply of goods or services of like, kind and quantity. Here, the taxable person can use as reference similar goods or services or both for determining the value of supply.

If the value is not determinable in the above two cases it shall be determined by either by the Cost Method or Residual Method.

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.

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