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Rule 31D of the CGST Rules, 2017

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

At a glance

Entitlement and conditions

  • Rule 31D(1), TableThe listed descriptions and tariff entries cover pan masala, unmanufactured tobacco and refuse excluding tobacco leaves, specified cigars and cigarettes, other manufactured tobacco and substitutes excluding biris, and the specified products intended for inhalation without combustion.

Procedure, powers and definitions

  • Rule 31D(1)–(2)Overriding the Chapter’s other valuation methods, value is declared retail sale price less applicable tax. Tax amount equals retail sale price multiplied by the applicable tax rate in percent, divided by 100 plus the sum of applicable tax rates.
  • Rule 31D, Explanation (a)–(b)Applicable tax means integrated, central, State or Union territory tax, as applicable. Retail sale price is the declared maximum consumer price for packaged goods and includes all taxes, duties, surcharge and cess.
  • Rule 31D, Explanation (c)–(e)Multiple prices on a package require the highest price. An increase before, during or after supply uses the increased price. Separate package prices for different areas apply to the goods intended for each corresponding area.

Rule 31D values the listed pan masala and tobacco-related goods by declared retail sale price less applicable tax, overriding the other methods in this Chapter. The retail price includes taxes and other stated charges, while the tax deduction uses the prescribed formula. Special rules select the price where packages carry multiple prices, increases or area-specific prices. The rule began on 1 February 2026.[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 31D, verbatim (show)

Rule 31D

1[Rule 31D. Value of supply of goods on basis of retail sale price.–

(1) Notwithstanding anything contained in the provisions of this Chapter, the value of supply of goods bearing the description specified in column (3), falling under the corresponding Chapter/ heading/ sub-heading/ tariff item specified in column (2), of the Table below, shall be deemed to be the retail sale price declared on such goods, less the amount of tax as applicable, namely: -

Table

Normal 0

false false false EN-IN X-NONE HI

S. No.

Chapter / Heading /

Sub-heading / Tariff item

Description of Goods

(1)

(2)

(3)

1.

2106 90 20

Pan masala

2.

2401

Unmanufactured tobacco; tobacco refuse [other than tobacco leaves]

3.

2402

Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes

4.

2403

Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco extracts and essences (other than biris)

5.

2404 11 00

Products containing tobacco or reconstituted tobacco and

intended for inhalation without combustion

6.

2404 19 00

Products containing tobacco or nicotine substitutes and intended for inhalation without combustion

(2) The amount of applicable tax referred to in sub-rule (1) shall be determined in the following manner, namely: —

Tax amount = (Retail sale price X tax rate in % of applicable taxes) / (100+ sum of applicable tax rate).

Explanation. — For the purposes of this rule, —

(a) “applicable tax” means IGST or CGST or SGST or UTGST as the case may be.

(b) "retail sale price" means the maximum price declared on goods at which such goods in packaged form may be sold to the ultimate consumer and includes all taxes, duties, surcharge or cess by whatever name called;

(c) where on the package of any specified goods more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price;

(d) where the retail sale price declared on packages of any specified goods is altered to increase the retail sale price at any stage before, during, or after the supply, such altered retail sale price shall be deemed to be the retail sale price;

(e) where different retail sale prices are declared on different packages for the sale of any specified goods above in packaged form in different areas, each such retail sale price shall be the retail sale price for the purposes of valuation of the specified goods intended to be sold in the area to which the retail sale price relates.]

1. Inserted (w.e.f. 01.02.2026) vide Notification No. 20/2025 - CT dated 31.12.2025.

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.

Paired goods classification 31D(1)

Questions to answer on the file4 questions
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Declared retail-price definition 31D Explanation(b)

Questions to answer on the file7 questions
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Multiple declared prices on the same package 31D Explanation(c)

Questions to answer on the file3 questions
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Increased declared retail price 31D Explanation(d)

Questions to answer on the file5 questions
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Different packages for different sale areas 31D Explanation(e)

Questions to answer on the file5 questions
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Applicable GST component tax 31D(2) and Explanation(a)

Questions to answer on the file5 questions
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Retail-price deemed supply value 31D(1)–(2)

Questions to answer on the file2 questions
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Amendment history

The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]

Amendments to Rule 31D as footnoted in the CBIC text
NoteChange
1Inserted (w.e.f. 01.02.2026) vide Notification No. 20/2025 - CT dated 31.12.2025.[2]
Provisions connected to Rule 31D
ProvisionConnectionWords that tie them
Rule 27Rule 27 overridden by this provision31D(1) "Notwithstanding anything contained in the provisions of this Chapter"
Rule 28Rule 28 overridden by this provision31D(1) "Notwithstanding anything contained in the provisions of this Chapter"
Rule 29Rule 29 overridden by this provision31D(1) "Notwithstanding anything contained in the provisions of this Chapter"
Rule 30Rule 30 overridden by this provision31D(1) "Notwithstanding anything contained in the provisions of this Chapter"
Rule 31Rule 31 overridden by this provision31D(1) "Notwithstanding anything contained in the provisions of this Chapter"

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this rule, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Notifications (1)

NumberDateSubject
Notification No. 20/2025-Central Tax31 December 2025Seeks to notify Central Goods and Services Tax (Fifth Amendment) Rules, 2025

Unsettled questions

The words of Rule 31D 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 31D. Value of supply of goods on basis of retail sale price". Central Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
  2. Notification No. 20/2025-Central Tax, dated 31 December 2025: Seeks to notify Central Goods and Services Tax (Fifth Amendment) Rules, 2025. Cited in CBIC footnote 1.

External links