SUBSIDY PROVIDED BY GOVERNMENT

Reverse sale by RS. 300/- (reduce the output tax liability in proportion to subsidy)
Or
Raise the tax Invoice as below
goods value 1000/-
less subsidy. 300/-
Taxable value 700/-
GST. @ 5% 35/-
Total. 735/-

Note : Kindly refer section 15 CGST Act

but sir what if 700 paid by customer to supplier, then 700 directly attract GST at 5%!
am I right?

Yes correct ,... thats what I have replied , only RS . 700/- is recoverable from customer

now comes the real doubt sir,
in case an organisation remits supplier some amount as subsidy and supplier sells goods to customer, how shall it be taxed?


for say: supplier sold 1500rs goods to customer where 500 as subsidy remitted by an organisation to supplier, how shall it be taxed?

Kindly explain Organisation .... if you mean Govt Concern ???

non goverment organisation ...

Ok fine

If it's Non Govt Organisation The Bill will be done in following

Goods value 1500/-
GST @ 5%. 75/-
Total 1575/-
Less subsidy. 500/-
Net payable. 1075/-

So net recoverable is 1075/-
note: calculation is done excluding Tax

@ priya
Try to understand both example , if Govt is giving subsidy , will be not include in value of supply the GST will levy on value after reducing the subsidy. & in case of Non govt subsidy Vice Versa

means the amount charged from customer + subsidy from non government will be taxed?

Yes ... correct

kindly refer section 15 CGST & valuation Rules

sir, who shall be liable to pay GST on 500rs of SUbsidy NON GOVT OR SUPPLIER AND HOW?

Plz when subsidy is from Non Govt the GST is applicable on Value of Supply :

Example 1.
In Case Non Govt subsidy is 500

lGoods Value : 1500/-
GST @ 5% :. 75/-
Total. 1575/-
Less : Subsidy :. 500/-
Net recoverable :. 1075/-

***GST is charged on full value of supply (GST being charge on Full value)



Example 2:
In case of Govt Subsidy 500/-

Value of Goods :. 1500/-
Less : subsidy :. 500/-

Taxable value. :. 1000/-
GST @ 5% :. 50/-
Total value. 1050/-

**GST is charged on value after reducing subsidy.

Hope above will clear your doubts

What do you mean by adding in the transaction value - invoice to customer?
and what shall be the liability of Ng organisation?