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All QuestionsCategory: GST CompliancesSubsidy received taxed under GST
Profile photo of Praveen K JoshiPraveen K Joshi asked 1 month ago

Subsidy received taxed under GST

2 Answers
Profile photo of CMA Deepa N. TannaCMA Deepa N. Tanna answered 3 weeks ago

Subsidy is kind of incentive given by government. Hence gst is not applicable.

Profile photo of Nikhil S BohraCA Nikhil S Bohra answered 3 weeks 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.