The subsidy portion provided by the Government shall not be included in the value of the supply to arrive at the taxable value, as per Section 15(2) (e) CGST Act.
There shall be no implication of Section 17(2) CGST Act, if taxable value is arrived after subtracting the subsidy amount from the system price.
Authority for Advance Ruling —– Subsidy --– The applicant supplies solar photovoltaic panels and Solar EPC services. The applicant is empanelled as channel partner to execute the solar rooftop system in Gujarat under the Surya Gujarat Yojna. The applicant sought Ruling as to whether subsidy should be reduced for arriving at Ex-factory value in order to collect the GST on goods supplied to the customer under the rooftop solar project; if yes then, whether they should claim refund for the excess amount of GST paid by them to the department; if no then, whether direction to this effect should be given to all other supplier for collection of GST on subsidy amount.
Held that:- The Hon’ble Authority for Advance Ruling held that the taxable Value on Tax invoice issued to the Customer shall be arrived after deducting the subject Subsidy from ‘System Cost’ and GST liability is on the Taxable Value. There shall be no implication of Section 17(2) CGST Act, if taxable value is arrived after subtracting the subsidy amount from the system price.
The subsidy portion provided by the Government shall not be included in the value of the supply to arrive at the taxable value, as per Section 15(2) (e) CGST Act.
There shall be no implication of Section 17(2) CGST Act, if taxable value is arrived after subtracting the subsidy amount from the system price.
Authority for Advance Ruling —– Subsidy --– The applicant supplies solar photovoltaic panels and Solar EPC services. The applicant is empanelled as channel partner to execute the solar rooftop system in Gujarat under the Surya Gujarat Yojna. The applicant sought Ruling as to whether subsidy should be reduced for arriving at Ex-factory value in order to collect the GST on goods supplied to the customer under the rooftop solar project; if yes then, whether they should claim refund for the excess amount of GST paid by them to the department; if no then, whether direction to this effect should be given to all other supplier for collection of GST on subsidy amount.
Held that:- The Hon’ble Authority for Advance Ruling held that the taxable Value on Tax invoice issued to the Customer shall be arrived after deducting the subject Subsidy from ‘System Cost’ and GST liability is on the Taxable Value. There shall be no implication of Section 17(2) CGST Act, if taxable value is arrived after subtracting the subsidy amount from the system price.