Subsidy Received From Government Should Be Reduced From Taxable Value: AAR Gujarat

In the case of Green Brilliance Renewable Energy LLP, AAR Gujarat has held that:

The Taxable Value on Tax invoice issued to the Customer shall be arrived after deducting the subject Subsidy from ‘System Cost’ and GST liability is on the Taxable Value.

Questions raised by the applicant:

1.) Whether subsidy should be reduced for arriving at Ex-factory value in order to collect the GST on goods supplied to the customer under the rooftop solar project?

2.) If yes than whether we should claim refund for the excess amount of GST paid by us to the department?

3.) If no then whether direction to this effect should be given to all other supplier for collection of GST on subsidy amo unt?

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