2019 (10) TMI 755

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.... read with Rule 104 of the CGST Rules, 2017 and KGST Rules 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Partnership firm and is registered under the Goods and services Tax Act, 2017. The applicant has sought advance ruling in respect of the following question: Whether the subsidy received from the state government would form part of consideration under section 2(31) of the CGST Act? 3. The applicant furnishes some facts relevant to the stated activity: a. The applicant states that the firm is engaged in the business of supply of food and beverages. Meanwhile the applicant has entered into a contract with Government of Karnataka for supplyi....

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....d. The price for the food is fixed and notified by the Government. In this regard, the applicant understands that in terms of Section 2(31) of the CGST Act, the value of supply of goods and/or services does not include subsidy given by the Central or the State Government. In other words, the applicant is of the considered opinion that subsidy given by the State / Central Government is kept outside the meaning of the valuable consideration for the purpose of GST liability. Based on such understanding, the applicant is not including subsidy amount given by the State Government while computing the "consideration" liable to GST. e. Still the applicant, with a principled stand to comply with GST Law in its true spirit and pay the correc....

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....restaurant services for the Indira Canteen through tender. He is providing the restaurant services by serving the food to beneficiaries and collecting a specified amount, which is notified, from beneficiaries based on daily menu of breakfast, lunch, dinner, for consumption there itself. At the end of the month, the applicant is submitting a consolidated bill by showing the amount collected from beneficiaries and subsidy available from the Government. 5.3 The term consideration is defined in the clause (31) of section 2 of the Central Goods and Services Tax Act and the same reads as under: "(31) "consideration" in relation to the supply of goods or services or both includes- (a) any payment made or to be made, whether in....