Applicability of GST on Government Grants

[Prashanth G]

Whether any grant-in-aid received from the government / or government body / or Government Board to meet the running expenditure / or working capital attracts GST for a registered dealer?

AI Summary

GST on government grants to meet running expenditure or working capital remains the central compliance issue for registered dealers. Applicability of GST is questioned in relation to grant-in-aid received by a registered dealer from the government, a government body, or a Government Board where the funds are provided to meet running expenditure or working capital. The issue is whether such grant support constitutes a taxable supply or other GST-liable receipt for the recipient dealer, as distinct from a mere funding assistance for business operations.