Value Nil in certain cases :
The value of taxable services provided by such class of suppliers of service as may be notified by the Government on the recommendations of the Council as referred to in Entry 2 of Schedule I between distinct persons as referred to in section 25, other than those where input tax credit is not available under section 17(5), shall be deemed to be NIL – rule 6(7) of Valuation Rules.
Entry 2 of Schedule I reads as follows – Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business.
Thus, in case of transaction of services between two branches or divisions of a person in different States, GST will not be payable if the branches are entitled to get 100% input tax credit. This is logically correct as in such
cases, payment of IGST becomes a fruitless exercise. This is good and practical provision indeed.