Subsidies under GST

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A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy.


Although commonly extended from government, the term subsidy can relate to any type of support – for example from NGOs or as implicit subsidies. Subsidies come in various forms including: direct(cash grants, interest-free loans) and indirect(tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates).

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