Advisory on RSP-Based Valuation of Notified Tobacco Goods under GST
The GST Network has issued an important advisory for taxpayers dealing in notified tobacco goods, specifically focusing on RSP (Retail Sale Price)–based valuation and its correct reporting across GST returns and compliance documents.
This advisory aims to remove confusion around how taxable value and tax liability should be reported when valuation is based on RSP under Section 4A of the CGST Act.
What is the Advisory About?
The advisory provides clear guidance on reporting taxable value and GST liability in the following documents and returns:
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e-Invoice
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e-Way Bill
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GSTR-1 / GSTR-1A
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IFF (Invoice Furnishing Facility)
Since tobacco products notified under GST are taxed based on RSP after prescribed abatements, the value appearing on invoices and GST returns often differs from the transaction value. The advisory clarifies how such values should be correctly disclosed to ensure consistency and avoid mismatches.
Why This Advisory Matters
Many taxpayers were facing issues such as:
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Mismatch between invoice value and taxable value
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Incorrect tax liability reporting in GSTR-1
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Errors during e-Invoice or e-Way Bill generation
This clarification helps taxpayers:
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Report values correctly in GST returns
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Avoid notices due to data mismatches
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Ensure smooth compliance for RSP-based goods
Who Should Pay Attention?
This advisory is especially relevant for:
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Manufacturers and traders of notified tobacco products
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Businesses generating e-Invoices and e-Way Bills
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Tax professionals handling GST compliance for such entities
Official Advisory Link
You can access the detailed advisory issued by GSTN from the official GST tutorial portal here:
https://tutorial.gst.gov.in/downloads/news/advisory_on_rsp_based_valuation_gstr-1_final_version.pdf
Final Thoughts
If your business deals in tobacco products covered under RSP-based valuation, it’s important to review your invoicing and return-filing process in line with this advisory. Proper reporting now can save you from unnecessary corrections, notices, and compliance hassles later.
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