RBI penalties for law violations & vendor liquidated damages not taxable under GST as per circular. Disciplinary, not service consideration.
Case-Laws
GST
Penalties, late fees, penal interest, and fines levied by RBI for contravention or violation of laws are for maintaining discipline and deterrence, not consideration for services, hence not taxable under GST as per circular. Penalties for non-performance or underperformance by vendors as per contract with RBI are liquidated damages to
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =