Case Law Details
In re M/s Rashmi Hospitality Services Private Limited (GST AAR Karnataka)
Whether the subsidy received from the state government would form part of consideration under section 2(31) of the CGST Act?
The subsidy amount received from the Government of Karnataka for the supply of service of food to the ultimate beneficiaries (consumers) in Indira Canteens by the applicant is excluded from the definition of consideration and would not form the part of the turnover on which tax is liable. The consideration collected from the beneficiaries is liable to tax after deducting the tax fraction as the price collected is inclusive of tax.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
1. M/s Rashmi Hospitality Services Private Limited, having GSTIN number 29AACCR5234Q2ZR, have filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 & KGST Act 2017 read with Rule 104 of the CGST Rules, 2017 and KGST Rules 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act.
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In this case where we should show the subsidy amount in GST returns. Is it under exempted sales ?