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Valuation- Goods re-possessed from defaulting borrowers - Gurukul Kendra

Valuation- Goods re-possessed from defaulting borrowers

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  • The proviso to Rule 32(5) of the CGST Rules provides that in case of the purchase value of goods repossessed from an unregistered defaulting borrower, for the purpose of recovery of a loan or debt shall be deemed to be the purchase price of such goods by the defaulting borrower
  • reduced by five percentage points for
  • every quarter or part thereof,
  • between the date of purchase and the date of disposal
  • by the person making such repossession.

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