Treatment in GST of central government subsidy to Fertiliser sector, etc
This query is : Resolved
Abhishek Jain
(Querist)
13 January 2023
Dear Sir / Madam,
Central Government is giving subsidy to manufacture of fertilisers for selling their product to farmers on lower rate as prescribed time to time.
I want to know whether subsidy is part of turnover or aggregate turnover in GST provisions. Also tax liability in the hand of subsidy recipient or reversal of Input Tax Credit (if any).
Regards,
Mohan Jain
Central Government is giving subsidy to manufacture of fertilisers for selling their product to farmers on lower rate as prescribed time to time.
I want to know whether subsidy is part of turnover or aggregate turnover in GST provisions. Also tax liability in the hand of subsidy recipient or reversal of Input Tax Credit (if any).
Regards,
Mohan Jain
CA R SEETHARAMAN
(Expert)
13 January 2023
Now as per section 15 [2] (e), the GST is not applicable to subsidies paid by the state or central government.
Recipient is not liable for GST on subsidy.
Recipient is not liable for GST on subsidy.
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