Looking for a business loan


Thank you for your interest, our team will get back to you shortly

Please Fill the Details to download

Thank you for your response

Get Expert Assistance

Thank you for your response

Our representative will get in touch with you shortly.

India's #1 GST software

1 click autofill GSTR-3B with G1 and 2B data

Download 2B data for multiple months in < 2mins

GSTR-2B vs purchase matching in under 1 min

India's No 1 GST software

Save upto 7% in taxes

Claim 100% ITC and save ~4% GST

3x faster experience

Save 2 man days every GSTIN month

Easy to connect

Connect with 100s of ERP's, import data error-free

Residual Method of Valuation of Supply Under GST

If the value of supply of goods and/or services cannot be determined from the cost method of valuation, the residual method can be used. Read here understand.

Updated on :  

08 min read.

Valuation of Supply

In our previous articles, we discussed the various methods of valuation of supply under GST. These rules need to be followed in case a specific scenario is applicable, for example in the case of non-monetary consideration or when a supply is made from principal to an agent or vice versa. In spite of these rules, if a registered person supplying goods or services under GST in still not able to determine the value, he may choose to follow  the Residual Method of Valuation.

Residual Method of Valuation

As per the residual method, where the value of supply of goods or services or both cannot be determined under the cost method, the same shall be determined using reasonable means consistent with the principles and general provisions of the Goods and Services Tax law. A simple interpretation of this rule suggests that supplier can use any method to determine the value of supply under GST, provided such method is justifiable in the case of inquiry. The registered taxable person should not exploit this method to displace the GST liability as the penal provisions are strict under the new indirect tax regime.

One example of the residual method is valuation on the basis of per unit when the cost of manufacturing can not be determined in principle. The number of man hours required to complete a job can be another example of such valuation method.

inline CTA
India’s Fastest and Most Advanced 2B Matching
Maximise ITC claims, use smart validations to correct your data and complete 2B matching in <1 minute