I am a distributor of oil and after achieving certain target the company is payine me subsidy for achieving target by leving GST.
How should I deal with this in my gst return.
3 Replies
CA Shikha Sharma
(Ceo)
(3869 Points)
Replied 19 April 2019
subsidy by non government entity shall not be excluded while calculating GST
saurabh sawlani
(Self employed )
(2193 Points)
Replied 20 April 2019
[3/5, 4:40 PM] saurav: 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
[3/5, 4:40 PM] saurav: 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
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
[3/5, 4:40 PM] saurav: 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
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