Praveen K Joshi asked 4 years ago
Subsidy received taxed under GST
Subsidy received taxed under GST
Answer the question2 Answers
CMA Deepa N. Tanna answered 4 years ago
Subsidy is kind of incentive given by government. Hence gst is not applicable.
CA Nikhil S Bohra answered 4 years ago
Section 2(31) of CGST act define consideration, where in it is specifically mentioned consideration shall not include any government subsidy (State and Center).
Therefore if any subsidy is received from State or Center government it will not be a consideration and hence no GST will be levied.
