In the present case incentive amount is received by the applicant and the applicant itself is benefitted, said benefit of incentive is not shared with its customers. The said incentive amount is liable to GST and does not merit exclusion from valuation under Section 15(2)(e) CGST Act.
Authority for Advance Ruling —– Incentive --– The applicant is a multi state Schedule Co-operative bank. The applicant sought an advance ruling as to whether the incentives received under “Atma Nirbhar Gujarat Sahay Yojna” dated 16.05.2020 declared by the State Govt. could be considered as subsidy and not chargeable to tax; whether the incentive received under said scheme could be considered as supply of service under the provisions of section 7; whether the incentive received under said scheme if considered as supply then would it be covered under Sub Section 2 of section 7 of the Act; whether the incentive received under said scheme could be considered as excluded from the value of taxable supply under clause (e) of Sub Section 2 of Section 15 of the Act, 2017.
Held that:- The Hon’ble Authority for Advance Ruling held that the incentive amount is liable to GST. The said Incentive is not subsidy and does not merit exclusion from valuation under Section 15(2)(e) the Act. The subject supply is covered at section 7(1)(a) Act and not covered at section 7(2) of the Act.
In the present case incentive amount is received by the applicant and the applicant itself is benefitted, said benefit of incentive is not shared with its customers. The said incentive amount is liable to GST and does not merit exclusion from valuation under Section 15(2)(e) CGST Act.
Authority for Advance Ruling —– Incentive --– The applicant is a multi state Schedule Co-operative bank. The applicant sought an advance ruling as to whether the incentives received under “Atma Nirbhar Gujarat Sahay Yojna” dated 16.05.2020 declared by the State Govt. could be considered as subsidy and not chargeable to tax; whether the incentive received under said scheme could be considered as supply of service under the provisions of section 7; whether the incentive received under said scheme if considered as supply then would it be covered under Sub Section 2 of section 7 of the Act; whether the incentive received under said scheme could be considered as excluded from the value of taxable supply under clause (e) of Sub Section 2 of Section 15 of the Act, 2017.
Held that:- The Hon’ble Authority for Advance Ruling held that the incentive amount is liable to GST. The said Incentive is not subsidy and does not merit exclusion from valuation under Section 15(2)(e) the Act. The subject supply is covered at section 7(1)(a) Act and not covered at section 7(2) of the Act.