GST: Value in respect of transfer to branches located outside state

In re Thirumalai Chemicals Limited (GST AAR Tamil Nadu)

Q. The value to be adopted in respect of transfer to branches located outside the state?

Ans: The applicant can adopt any one of the following three methods provided under Rule 28 of the CGST/ TNGST Rules 2017 read with Section 15 of the CGST/TNGST Act 2017to arrive at the value in respect of supply to distinct persons

a. Open Market Value as is presently being adopted by them;

b. 90% of the ultimate sale value as raised by the distinct persons to the un-related ultimate customers based on the Purchase Orders in cases of ‘as such’ supplies;

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