Eye Share : Related Party Valuation – Moot question on recipient’s full ITC eligibility

The GST law permits valuation of supplies of goods and / or services at arm’s length when the parties are unrelated and the price is the sole consideration. However, transactions undertaken between ‘related persons’, as envisaged under the law, may distort the valuation thereby leading to lower GST payable to the Govt. exchequer. To overcome this situation, the legislature has prescribed certain rules to determine the value of such supplies / tr...