GST applicability on Interest Subvention receives from nationalized bank

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....ST applicability on Interest Subvention receives from nationalized bank<br> Query (Issue) Started By: - Western India Dated:- 30-12-2020 Last Reply Date:- 4-1-2021 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Sir, Require a clarification whether the GST is applicable on interest subvention received from a bank for reducing the effective interest of Working capital loan (Packing credit ....

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....facility). Any section or case laws supporting the above fact Also there is a clarification required that, since GST is not applicable for Interest on working capital loan, whether the subvention received for the same is applicable for GST Reply By KASTURI SETHI: The Reply: Interest subvention is a subsidy and GST on subsidy is not applicable if granted by Central Govt. or Statement. See the de....

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....finition of &#39;Consideration&#39; under Section 2 (31) of CGST Act. In your case, it is taxable. Peruse the following decision of AAR:- 2019 (26) G.S.T.L. 269 (A.A.R. - GST) = 2019 (7) TMI 810 - AUTHORITY FOR ADVANCE RULING, TAMILNADU IN RE : DAIMLER FINANCIAL SERVICES INDIA PVT. LTD. Reply By Western India: The Reply: Sir, In our case subsidy is received from Bank as per RBI Scheme (interes....

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....t equalization scheme) Since RBI comes under Central Government, whether we require to pay GST. Reply By KASTURI SETHI: The Reply: Bank is not fully Govt. body. It is Govt of India undertaking. Reply By KASTURI SETHI: The Reply: Dear Querist, You are right. RBI is fully Govt. All other banks are Govt.of India undertakings. Interest subvention is actually borne by Central Govt. Bank is only v....

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....ia medium (channel) through which you get interest subvention. Discussed the whole issue with retired Bank Officer. Since this subsidy is borne by Central Govt., GST is NOT applicable. Reply By Western India: The Reply: Thank you Sir for your valuable information<br> Discussion Forum - Knowledge Sharing ....