The Goods and Services Tax Network (GSTN) has issued an important advisory regarding the reporting of taxable value and tax liability for notified tobacco goods that are assessed under the Retail Sale Price (RSP)-based valuation mechanism.

This advisory is intended to guide taxpayers on the correct method of reporting transactions in statutory GST returns and documents, ensuring compliance and accuracy in GST filings.

What is RSP-Based Valuation?

For certain notified tobacco products, GST is not calculated on the transaction value but instead on the Retail Sale Price (RSP) declared on the product, after allowing the prescribed abatement. This valuation method is applicable as per GST law to ensure uniform taxation across the supply chain.

Key Reporting Areas Covered in the Advisory

The advisory provides detailed guidance on how taxable value and tax liability should be reported in the following GST documents:

• e-Invoice
• e-Way Bill
• GSTR-1
• GSTR-1A
• Invoice Furnishing Facility (IFF)

Taxpayers dealing in notified tobacco goods must ensure that the taxable value derived from RSP-based valuation is correctly reflected in all the above filings.

Important Points for Taxpayers

• The taxable value should be computed based on RSP, not the actual transaction value.
• The same taxable value must be consistently reported across e-Invoice, e-Way Bill, and GST returns.
• Incorrect reporting may lead to mismatches, notices, or compliance issues.
• Businesses dealing in notified tobacco goods should review their invoicing and return-filing processes to align with the advisory.
  
  Reference

The detailed advisory issued by GSTN can be accessed using the link below:

https://tutorial.gst.gov.in/downloads/news/advisory_on_rsp_based_valuation_gstr-1_final_version.pdf