Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 1-2-2017 – GST DAILY DOSE OF UPDATION Definition of Consideration Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:- Section 2(28): Consideration: the new definition reads as follows: Consideration in relation to the supply of goods or services includes (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or
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utmost importance in the light of decision of Supreme Court in the case of Maruti Suzuki Ltd. which states that subsidy provided by the government in form of adjusted payment of VAT will be treated as additional consideration and will be added in the assessable value of the goods for the purpose of excise duty. Relying on this decision, notices were sent to assessees claiming this subsidy. Now the new definition has specifically excluded the subsidies from its purview putting rest to all the possible litigations that may arise on this issue. Another point of probable litigation is that the definition states that consideration can be voluntary or non voluntary. Although the main phrase uses the term any act or forbearance , but it does not
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