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Self-Invoice Value Considered Open Market Value for RCM: West Bengal AAR

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Summary

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  • The West Bengal Authority for Advance Ruling has determined that the self-invoice value declared by Wood India Engineering & Projects Private Limited can be deemed as the open market value for GST under reverse charge, following Circular No. 210/4/2024-GST.
  • This ruling applies to IT support services imported from related foreign entity Wood Group UK Limited, with the applicant eligible for full input tax credit.
  • The Authority emphasized that Rule 28 of the CGST Rules applies due to the relationship between the parties, allowing for this valuation approach.
  • This decision could significantly impact how related-party transactions are valued under GST, particularly in terms of compliance and tax liability.

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