"However, sources in the CBEC told IANS that it is a prima facie inquiry to verify the tax liability details of the company. But as a first step, we just send a letter and summon comes only as the second resort. "Service tax is not payable on grants disbursed by government, provided it does not directly affect the value of service. Thus, service tax may not be payable on the grants received by GSTN," analyst Pritam Mahure told IANS. "In case, the concern of service tax applicability still persists in the minds of service tax authorities, then government/CBEC can explore issuance of specific clarification or exemption notification," he added.

Source: Economic Times February 18, 2017 13:18 UTC