. In certain cases, the selling price of the final product is less since subsidy is received from Government. Are subsidies received from Government required to be included in the transaction value

Subsidies received by the supplier, from Central / State Governments are not required to be included in the transaction value of supplies effected by him, even if the subsidies are directly linked to the supplies made by him.

(ICAI FAQ PUBLICATIONS 06-09-2017 VALUE OF TAXABLE SUPPLY: FAQ NO. 57)