Valuation under GST

The basic approach

Start with the transaction value, the price actually paid or payable, if the parties are unrelated and price is the sole consideration. Then add the items in Section 15(2), such as incidental expenses and late payment interest, and exclude qualifying discounts under Section 15(3).

The valuation rules

• Rule 27: consideration not wholly in money, such as barter or exchange.
• Rule 28: supplies between related persons or distinct persons, including branch transfers.
• Rule 29: supplies made or received through an agent.
• Rule 30: value based on cost plus 10%.
• Rule 31: residual method using reasonable means consistent with the law.
• Rules 31A to 31C: lottery, betting, gambling, horse racing, online gaming and casinos.
• Rule 32: specific cases such as money changing, air travel agents, life insurance and second-hand goods under the margin scheme.
• Rule 33: pure agent expenses.
• Rule 34: exchange rate for foreign currency values.
• Rule 35: value where the price is inclusive of tax.

Getting valuation right

Rules 27 to 31 are applied in sequence, so you move to the next only if the earlier rule cannot be used. Document your method, especially for related party and branch supplies. Valuation disputes often arise in audits years later, and written workings made at the time are the best defence.

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.