GST BUDGETARY SUPPORT

The GST Budgetary Support Scheme refunds a portion of CGST/IGST paid in cash to units in erstwhile tax-exempt zones. Under accounting standards (Ind AS 20 / AS 12), it is treated as a Revenue Government Grant. It should be credited to the Profit & Loss Statement under "Other Income" or "Other Operating Revenue" once there is reasonable assurance of its receipt, with a corresponding receivable created until the cash arrives in the bank.