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TMI Blog2019 (10) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration received in the form of subsidy given by the State Government or Central Government for the supply of service of food and drinks to the end-user is excluded from the definition of consideration and hence would not form the part of the consideration and in consequence does not form the part of the turnover - But the amount collected for the supply from the beneficiaries, which is inclusive of tax, would form the consideration on which the turnover is to be calculated after deducting the proportionate tax as the collected consideration is inclusive of tax. - KAR ADRG 61/2019 - - - Dated:- 20-9-2019 - SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by: Sri Vishwanath S Navalgund, Chartered Accountant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Palike in Bengaluru City where as in the outside districts the canteens were run by local Municipal Corporations who shall provide designated infrastructure designed for such canteens. The applicant has been awarded the contract of supply of food in four districts of Karnataka viz. Tumakuru, Belagavi, Davanagere and Mysore districts. c. The applicant shall supply meals as per the terms of the contract wherein the number of meals is fixed. Essentially such scheme being only to provide low cost subsidized food to the local people, the applicant receives subsidy from the Government in addition to the contracted price from the beneficiaries towards the supply of meals in the following manner: SI.No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms of section 2(31) of the KGST Act, 2017 and the CGST Act, 2017. PERSONAL HEARING 4. Sri Vishwanath, Chartered Accountant, M/s Rashmi Hospitality Services Private limited appeared on behalf of the applicant before the Authority for Advance Ruling for hearing. 4.1 The DAR argued that the Government of Karnataka has given subsidy on serving of food through Indira Canteen to the end-users who are from the weaker sections of the society through low subsidized value as a part of the government programme. 5. FINDINGS DISCUSSION: We have considered the submissions made by the applicant in their application for advance ruling as well as the additional submissions made by Sri Vishwanath, Chartered Accountant, during the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply; It is clear from the above, the amount of subsidy given by the Central Government or a State Government is not a part of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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