Determine the Value of Supply with reference to the provisions of the CGST Act, 2017 for the following independent cases: (i) State Government authorized a lottery where the face value per ticket was ₹ 640. The price not

Determination of Value of Supply S. No. Explanation (i) As per section 15(3) and rule 31A, the value of supply of lottery shall be deemed to be 100/128 of the face value of ticket or the price as notified in the official gazette by the organizing State whichever is higher. Therefore, the value of supply shall be ₹ 640 x 100/128 = ₹ 500 as it is higher than the price notified in the official gazette being ₹ 450. (ii) As per section 15(3) read with rule 32, the difference in the buying rate or the selling rate and RBI reference rate for that currency would be adopted for the total units of currency exchanged. In this case, ₹ 80 - ₹ 78 = ₹ 2 x USD 10,000 = ₹ 20,000 shall be the value of supply of service on purchase of USD (foreign currency) for conversion into INR. (iii) As per section 15(3) read with rule 32(3), the value of supply in relation to domestic booking shall be 5% of the basic fare. Therefore, the value of supply would be ₹ 60,000 x 5% = ₹ 3,000. (iv) As per section 15(3) read with rule 27, the value of supply of goods or services where the consideration is not wholly in money, the sum of total consideration in money and such further amount in its equivalent shall be the value of supply. In this case, the mobile handsets would have been sold for ₹ 35,000 if there was no exchange and therefore, that would be the value of supply when the new mobile handset is supplied for ₹ 30,000 along with an exchange of an old handset. (v) As per section 15(3) read with rule 29, the value of supply between principal and his agent shall be the open market value of the goods being supplied or 90% of the price charged for the supply of goods of like kind and quality by the recipient to his customer (not being related person) - at the option of the supplier. In this case 90% of the like kind and quality amounts to ₹ 4,500 (90% of ₹ 5,000) or the value of supply made by another independent supplier being ₹ 4,600 (being an open market value). The choice is open to the supplier regarding adoption of value of taxable supply. So as more beneficial for supplier is ₹ 4,500 will be treated as value of supply.