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2021 (8) TMI 739 - AAR - GSTValuation - Reduction of subsidy for arriving at Ex-factory value in order to collect the GST on goods supplied to the customer under the rooftop solar project - refund for the excess amount of GST - direction to this effect should be given to all other supplier for collection of GST on subsidy amount or not - HELD THAT:- To accord the benefit to deduct subsidy portion for arriving at transaction value with the customer, the applicant was not able to produce evidence that the subsidy was indeed given/borne by the Government - the subsidy portion provided by the Government shall not be included in the value of the supply to arrive at the taxable value, as per Section 15(2) (e) CGST Act. The bidder rates in the EOI are inclusive of GST. Further, the Subsidy is calculated on the total rate in Rs.per Wp(DC). This rate is inclusive of GST. The applicant has collected Subsidy from the Government in this regard and this subsidy amount is inclusive of GST, the applicant is required by law to pay to the Government the said amount in the subsidy representing GST, irrespective of the position of law that subsidy portion is to be deducted from the value of supply charged to the customer, for arriving at the taxable value - the applicant sought Ruling on the implications of Section 17(2) CGST Act, if taxable value is derived after subtracting the subsidy amount from the system price. The provisions of Section 17(2) CGST are attracted when the applicant is effecting taxable supplies and exempt supplies. The subject supply of the applicant is a taxable supply and for the reason that taxable value for charging GST is arrived after subtracting subsidy, does not alter the nature of taxable supply. It remains taxable supply. Therefore, for this matter presented before us, there is no implication of section 17(2) CGST.
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