Ram Avtar resident of Nagpur has entered into a roll over contract approached NDMC Bank Ltd on 12-01-2020 for selling US $ 4,50,000 at the rate of ₹ 75 per USD. RBI reference rate on 12-01-2020 was ₹ 76 and the rate of e

Rule 32(2)(a) of CGST Rules, 2017 provides the manner of determination of the value of taxable supply so far as it pertains to purchase or sale of foreign currency including money changing. The value of service for currency, when exchanged from, or to, Indian Rupees (INR), shall be equal to the difference in the buying rate or the selling rate, as the case may be and the Reserve Bank of India (RBI) reference rate for that currency at that time, multiplied by the total units of currency. Central Board of Excise and Customs (CBEC) rate has no relevance for determining the value of taxable supply of service. Hence the value of taxable supply = RBI reference rate of USD x Total units of currency = ₹ (76 – 75) x 4,50,000 = ₹ 4,50,000. The taxable value of supply shall be ₹ 4,50,000.