Saraswathi Polymers Pvt. Ltd., has two units, one in Coimbatore, Tamil Nadu and another in Thrissur, Kerala. In the Coimbatore unit, it manufactures customised products only. Each lot consists of 100 units and is valued

As per section 25(4) of the CGST Act, 2017, a person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act. Therefore, units of Saraswathi Polymers Pvt. Ltd. in Kerala and in Coimbatore are two distinct person. As per rule 28 of CGST Rules 2017, the value of the supply of goods between distinct persons as specified in sub-sections (4) and (5) of section 25 of the CGST Act, 2017 or where the supplier and recipient are related, other than where the supply is made through an agent, shall, - (a) be the open market value of such supply; (b) if the open market value is not available, be the value of supply of goods or services of like kind and quality; (c) if the value is not determinable under clause (a) or (b), then the cost of supply plus 10% mark up or be determined by other reasonable means, in that sequence. 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: In the given case, open market value of the 100 units being supplied to Kerala unit is not available since the supplier manufactures customized products. Therefore the value of 100 units supplied by Tamil Nadu unit of Saraswathi polymers Pvt. Ltd. to Kerala unit will be the value of the goods of similar kind and quality supplied to Kerala unit by other customers which is being ₹3.5 lakhs per 100 units. Since goods are not supplied as such by the Kerala unit, goods cannot be valued @ 90% of the price charged for the supply of like goods by the Tamil Nadu unit to its unrelated customers in terms of first proviso to rule 28 of CGST Rules, 2017. Hence, value be taken at ₹3.5 lakh for the 100 units supplied by Tamil Nadu Unit to its Kerala Unit for the purpose of processing.