Understanding "Consideration" Under CGST Act 2017: Payments, Exclusions, and Exceptions Explained

The GST Ready Reckoner outlines the concept of "consideration" under the CGST Act, 2017, which includes any payment made in money or otherwise for the supply of goods or services. It excludes government subsidies unless directly linked to supply. Consideration can be monetary or non-monetary, such as acts of forbearance. Exceptions exist where supply is recognized without consideration. Important clarifications include non-taxability of donations to charitable organizations and specific rules for artists and returnable packing materials. Case laws address issues like interest-free deposits and the inclusion of charitable donations in transaction values. Examples illustrate various forms of consideration in transactions.

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