TaxTMI 
TaxTMI 
GST—Value of Supply & Government Subsidy Routed via PSU
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....ST—Value of Supply & Government Subsidy Routed via PSU<br> Query (Issue) Started By: - Kumar Gaurav Dated:- 21-2-2026 Last Reply Date:- 27-2-2026 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>If a company sells goods to Government and receives a price-linked subsidy from a PSU on behalf of the Government (not directly from the Govt.), should such subsidy be excluded from the value of s....
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....upply under Section 15(2)(e) of the CGST Act (which excludes subsidies provided by Central/State Government) Reply By KASTURI SETHI: The Reply: In this scenario, subsidy cannot be excluded from the value of supply. An PSU is not fully Govt. The phrase, "on behalf of" is a bottleneck here. Reply By Sadanand Bulbule: The Reply: Also refer the following: 2024 (2) TMI 351 - MADRAS HIGH CO....
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....URT - M/s. Supreme Paradise Versus Assistant Commissioner (ST) North 1 Circle, Tirupur. Reply By KASTURI SETHI: The Reply: Dear Sir Ji, In my view, subsidy and discount are different concepts/terms. Your opinion for enrichment of my knowledge please. Reply By Sadanand Bulbule: The Reply: Dear Sir ji Your understanding is doctrinally sound: Discount is a commercial p....
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....ricing adjustment. Subsidy is a sovereign or institutional financial assistance. Reply By KASTURI SETHI: The Reply: Dear Sir Ji, I am highly thankful to you for your comprehensive reply. Your prompt reply is highly appreciated. Reply By Shilpi Jain: The Reply: It would be relevant to see the terms and conditions of the contract, if any, to comment further.<br> Discussion F....
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