Minimum Guaranteed Off-take charges are liquidated damages, not taxable supply under Section 7(1A) and Schedule II(5)(e)

Minimum Guaranteed Off-take charges are liquidated damages, not taxable supply under Section 7(1A) and Schedule II(5)(e)Case-LawsGSTAAR held that Minimum Guaranteed Off-take (MGO) charges constitute liquidated damages and do not amount to a “supply” or “c

Minimum Guaranteed Off-take charges are liquidated damages, not taxable supply under Section 7(1A) and Schedule II(5)(e)
Case-Laws
GST
AAR held that Minimum Guaranteed Off-take (MGO) charges constitute liquidated damages and do not amount to a “supply” or “consideration” under the CGST framework. Applying the definition of declared services in Schedule II(5)(e) and the Contract Act principles, the Authority found no requisite nexus between the payment and any obligational supply (i.e.,

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