The grant from the Food and Agriculture Organisation of UN is...

The grant from the Food and Agriculture Organisation of UN is not a supply under the GST Act. The applicant will not supply any goods or services to the FAO for the grant received. It is a gratuitous grant for overcoming obstacles faced by the applicant during the pandemic. The activities undertaken by the applicant using the grant are not covered under the scope of supply. Since the grant is not a consideration, it does not attract GST. The applicant is ineligible to claim a refund of GST paid on the grant u/s 55 of the CGST Act, as the question is beyond the purview of Section 97.

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