New GST rules provide clarity on 3 issues

Transactions between related parties will now be valued at 90% of the market value

On Thursday, the GST Council approved all eight rules, clearing the ground for the rollout of the goods and services tax (GST). A preliminary reading of these rules reveals three significant changes. 

First, the final rules have clarified on the valuation of goods between related parties. Under the new indirect tax regime, transactions between related parties, for example two companies belonging to the same group, will now be valued at 90 per cent of the market value. 

“This is a simple method of valuation and provides much-needed clarity to the industry,” said Pratik Jain, national leader-indirect tax, PwC India. 

Second,