GST on liquidated damages for service-agreement breach held as compensation, not supply consideration; tax notice quashed, refund ordered

GST on liquidated damages for service-agreement breach held as compensation, not supply consideration; tax notice quashed, refund orderedCase-LawsGSTGST was sought to be levied on liquidated damages received for breach/non-performance under a service agre

GST on liquidated damages for service-agreement breach held as compensation, not supply consideration; tax notice quashed, refund ordered
Case-Laws
GST
GST was sought to be levied on liquidated damages received for breach/non-performance under a service agreement. The Court held that such amounts represent compensation for loss/damage payable under ss. 73-74 of the Contract Act and are expressly covered by para 7 (including paras 7.1 and 7.1.6) of Circular No. 178/10/2022, which clarifi

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