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Applicability of gst on grants in aid from govt

5233 views 1 replies

Ganesh Venkatram

Service

32 Points Joined September 2007

Hello

Can anybody clarify or share the appropriate provisions under GST wherein Grants in Aid received from Central Govt or State Government to a Nodal Agency for a specific purpose has any GST implications.

The nodal agency is responsible for creating a ecosystem with the grants.

I mean whether the nodal agency which is providing the service has to pay GST under reverse charge mechanism.

Thanks

Ganesh

Replies (1)

Abhishek kumar

61 Points Joined February 2015

Dear
if you know that your service is fulfilling the creatoriya for recd. a grant. than while calculating the assessable value for gst you should not include or exclude the amount of grant recd.
so no Gst on grant value.
say service/goods supplied for rs. 1lakh.
eligible for grant on it 20000.
than while calculating the assessable value for gst .
1lkh
no gst on 20 k
.
further note that if subsidy recd. other than govt. will be include in in AV.