Subsidy received from Foreign Government

[Priyesh Mamnani]

The company has received subsidy from foreign government, so whether it will be included in value of supply? As per section 15 subsidies from central and state government are excluded while calculating value of supply.

AI Summary

Debate on Including Japanese Government Subsidy in Supply Value under GST; Section 15 CGST Act Considered A company received a subsidy from the Japanese government for providing technical training to Indian students. The query concerns whether this subsidy should be included in the value of supply under the Goods and Services Tax (GST). Respondents argue that, according to Section 15 of the CGST Act, subsidies from foreign governments are includible in the transactional value as they do not fall under the exclusion clause. The Memorandum of Understanding between India and Japan does not affect this assessment. Additionally, it is suggested to verify the applicability of the Foreign Contribution (Regulation) Act, 2010.