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2019 (10) TMI 755 - AAR - GSTValuation - subsidy given by the Central Government or a State Government - Whether the subsidy received from the state government would form part of consideration under section 2(31) of the CGST Act? - HELD THAT:- The amount of subsidy given by the Central Government or a State Government is not a part of the consideration as per the section 2(31) of the CGST Act - A “Subsidy” or government incentive is a form of financial aid or support extended to an economic sector generally with the aim of promoting economic and social policy. As per provisions of the 2(31) of SGST/CGST consideration received in the form of subsidy given by the State Government or Central Government for the supply of service of food and drinks to the end-user is excluded from the definition of consideration and hence would not form the part of the consideration and in consequence does not form the part of the turnover - But the amount collected for the supply from the beneficiaries, which is inclusive of tax, would form the consideration on which the turnover is to be calculated after deducting the proportionate tax as the collected consideration is inclusive of tax.
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