Section 2(73) of CGST Act: Meaning of “Market Value”
As per Section 2(73) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term “market value” has been defined, as under:
Section 2(73) of CGST Act: Definition of “Market Value” (CHAPTER I – PRELIMINARY)
“market value” shall mean the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and at the same commercial level where the recipient and the supplier are not related.
The Central Goods and Services Tax (CGST) Act, 2017 was notified by Govt. on 12 April, 2017 and CBIC has notified the commencement date for various Sections/ Provisions thereof from time to time. Subsequently, Govt. has notified the Central Goods and Services Tax (CGST) (Amendment) Act, 2018 on 30 Aug. 2018. However, commencement date of amended provisions of various Sections is to be separately notified by CBIC, except where specifically mentioned in the CGST Amendment Act, 2018 itself.