The AAR Karnataka ruled out that the Subsidy received from the Central / State Government was not to be excluded from the value supply.
Priyanka Kumari | Oct 28, 2023 |
Subsidy received from Central / State Government not to be excluded from value supply: AAR
The Karnataka Advance Authority for Advance Ruling (AAR Karnataka) ruled out that the Subsidy received from the Central / State Government was not to be excluded from the value supply.
A company, Hitze Boilers Private Limited, Plot No 52 and 53, Kunigal Industrial Area, Kallanayakanahalli Village, Hutridurga Hobli, Kunigal Taluk, Tumakuru-572130, having GSTIN 29AACCH6705L1ZA have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act.
The question and ruling are:
Question: Whether the subsidy received from the Central or State Government to be excluded from the value for the purpose of arriving at the GST liability?
Ruling: The subsidy received from the Central / State Government cannot be excluded from the value of supply as the same is not affecting the price of supply.
For Official Ruling Download the PDF Given Below:
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