TaxTMI 
TaxTMI 
Dear All Learned Members,
I wanted to know the complete tax mechanism in gst in case where government grants are received by private charitable trust for cultural event either under reverse charge or forward charge
PRIVATE CHARITABLE TRUST
03 Jun 2024 
5 Replies 
1278 Views Asked by
Government grants exclusion from GST applies unless the grant confers a commercial gain making it taxable.
Subsidies/grants provided by Central and State governments are excluded from the value of supply under Section 15(2)(e) of the CGST Act and thus are not taxable as they do not constitute consideration; however, if the grant confers a commercial gain to the trust or functions as payment for services, it may be treated as taxable value, and the specific terms and conditions of the grant must be examined to determine GST liability. (AI Summary)
Subsidies/grants provided by Central and State governments are excluded from the value of supply under Section 15(2)(e) of the CGST Act and thus are not taxable as they do not constitute consideration; however, if the grant confers a commercial gain to the trust or functions as payment for services, it may be treated as taxable value, and the specific terms and conditions of the grant must be examined to determine GST liability. (AI Summary)