We often receive fund from Govt. Fund is utilised to procure some materials for distribution among the farmers. Some times a portion of the cost of materials is recovered from the beneficiaries but sometimes 100% subsidy is given. Now, my question is whether we will have to collect GST on such tranansfer/sale of materials?
If we give 50% subsidy and collect 50% in cash against the materials and that materials have been purchased out of the fund (50%) made available by State/central Govt., then what is the impact of GST and how can i issue eway bill of such item.