Case Law Details
In re Hitze Boilers Private Limited (GST AAR Karnataka)
In a recent ruling by the Authority for Advance Ruling (AAR) Karnataka, the issue of whether subsidies received from the Central or State Government should be excluded from the calculation of Goods and Services Tax (GST) liability was addressed. This ruling has significant implications for businesses that receive such subsidies. In this article, we will delve into the details of the case “In re Hitze Boilers Private Limited (GST AAR Karnataka)” and analyze the AAR’s decision.
Background of the Case
Hitze Boilers Private Limited, a manufacturer of machinery and industrial boilers, sought an advance ruling from the AAR Karnataka regarding the treatment of subsidies received from the Central and State Governments in the context of GST liability. Specifically, they inquired whether these subsidies should be excluded from the value of supply when calculating their GST liability.
Applicable GST Provisions
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