I am a distributor of oil and after achieving certain target the company is payine me subsidy for achieving target by leving GST.
How should I deal with this in my gst return.
3 Replies
CA Shikha Sharma
(Ceo)
(3869 Points)
Replied 19 April 2019
subsidy by non government entity shall not be excluded while calculating GST
saurabh sawlani
(2191 Points)
Replied 20 April 2019
[3/5, 4:40 PM] saurav: Reverse sale by RS. 300/- (reduce the output tax liability in proportion to subsidy)
Or
Raise the tax Invoice as below
goods value 1000/-
less subsidy. 300/-
Taxable value 700/-
GST. @ 5% 35/-
Total. 735/-
Note : Kindly refer section 15 CGST Act
[3/5, 4:40 PM] saurav: Ok fine
If it's Non Govt Organisation The Bill will be done in following
Goods value 1500/-
GST @ 5%. 75/-
Total 1575/-
Less subsidy. 500/-
Net payable. 1075/-
So net recoverable is 1075/-
note: calculation is done excluding Tax
Or
Raise the tax Invoice as below
goods value 1000/-
less subsidy. 300/-
Taxable value 700/-
GST. @ 5% 35/-
Total. 735/-
Note : Kindly refer section 15 CGST Act
[3/5, 4:40 PM] saurav: Ok fine
If it's Non Govt Organisation The Bill will be done in following
Goods value 1500/-
GST @ 5%. 75/-
Total 1575/-
Less subsidy. 500/-
Net payable. 1075/-
So net recoverable is 1075/-
note: calculation is done excluding Tax
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