Subsidy from Govt.

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..... Subsidy from Govt.
Query (Issue) Started By: - Kaustubh Karandikar Dated:- 14-6-2019 Last Reply Date:- 15-6-2019 Goods and Services Tax - GST
Got 2 Replies
GST
XYZ Ltd. receiving subsidy .....

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..... from government on which as understood no GST is payable. In that case, are they required to proportionately reverse the Input Tax Credit taken on common goods and services? Reply By Ganeshan Kalyani .....

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..... : The Reply: In my view no reversal is required. Reply By KASTURI SETHI: The Reply: Dear Sir, I agree with Sh.Ganeshan Kalyani, Ji. The definition of 'Exempt Supply', inter alia, include .....

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..... s non-taxable supply. This does not include 'no-supply or non-supply'.Subsidy is non-supply/no-supply. To qualify as non-taxable supply, it must be 'supply' first in order to fall in t .....

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..... he definition of 'Exempt Supply" for the purpose of reversal of ITC. Hence no reversal of ITC at all.
Discussion Forum - Knowledge Sharing .....

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