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Rule 29 of the CGST Rules, 2017

From the IndiaAuditLens Law Library

GST›CGST Rules, 2017›Chapter IV, Determination of Value of Supply

At a glance

Procedure, powers and definitions

  • Rule 29(a)The value is open market value or, at the supplier’s option for goods intended for further supply, ninety percent of the recipient’s price for goods of like kind and quality to an unrelated customer.
  • Rule 29(b)If clause (a) cannot determine value, rule 30 applies before rule 31.

Rule 29 values goods supplied between a principal and an agent. Open market value is available as the ordinary measure. Where the recipient intends further supply, the supplier may instead choose the stated percentage of the recipient’s price to an unrelated customer for like goods. If neither route determines value, the cost rule precedes the residual rule.[1]

Text

The text below is the rule as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Rules as published in the Gazette of India is the legal source.

Rule 29, verbatim (show)

Rule 29. Value of supply of goods made or received through an agent. -

The value of supply of goods between the principal and his agent shall-

(a) be the open market value of the goods being supplied, or at the option of the supplier, be 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, where the goods are intended for further supply by the said recipient. Illustration : A principal supplies groundnut to his agent and the agent is supplying groundnuts of like kind and quality in subsequent supplies at a price of five thousand rupees per quintal on the day of the supply. Another independent supplier is supplying groundnuts of like kind and quality to the said agent at the price off our thousand five hundred and fifty rupees per quintal. The value of the supply made by the principal shall be four thousand five hundred and fifty rupees per quintal or where he exercises the option, the value shall be 90 percent. of five thousand rupees i.e., four thousand five hundred rupees per quintal.

(b) where the value of a supply is not determinable under clause (a), the same shall be determined by the application of rule 30 or rule 31 in that order.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the rule they come from. They describe what the rule asks; they do not decide it.

Principal-agent goods population 29

Questions to answer on the file3 questions
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Optional recipient-price method eligibility 29(a)

Questions to answer on the file4 questions
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Ninety-percent recipient-price arithmetic 29(a)

Questions to answer on the file1 question
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Ordinary and ordered fallback valuation 29(a)–(b)

Questions to answer on the file7 questions
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Provisions connected to Rule 29
ProvisionConnectionWords that tie them
Rule 30this provision requires Rule 3029(b) "rule 30 or rule 31 in that order"
Rule 31this provision requires Rule 3129(b) "rule 30 or rule 31 in that order"

Circulars and notifications

No circular or notification in the CBIC repository is recorded as citing this rule.

Unsettled questions

The words of Rule 29 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.

  1. No silent question is replaced by a firm-policy fact; external legal prescriptions remain dependencies.

See also

References

  1. Central Board of Indirect Taxes and Customs. "Rule 29. Value of supply of goods made or received through an agent". Central Goods and Services Tax Rules, 2017, CBIC tax information portal. Retrieved 17 September 2026.

External links