How will the value of the supply of this drug intermediate be determined under GST law?

Since the supply is made to a distinct person, the same will be valued in accordance with rule 28 of the CGST Rules, 2017 relating to valuation. There is no open market value of the drug intermediate as also there are no like goods. Therefore, value of supply of such drug intermediate will be determined in terms of clause (c) of rule 28 i.e., by using rule 30 of the CGST Rules, 2017. Thus, the value of supply of such drug intermediate will be 110% of its cost of production or manufacture. However, if the recipient unit is eligible for full ITC, the value declared in the invoice by the supplier will be deemed to be the open market value of the drug intermediate and thus, the invoice value will be the value of taxable supply.