{"id":74704,"date":"2026-01-01T11:12:19","date_gmt":"2026-01-01T05:42:19","guid":{"rendered":""},"modified":"2026-01-01T11:12:19","modified_gmt":"2026-01-01T05:42:19","slug":"gst-on-liquidated-damages-for-service-agreement-breach-held-as-compensation-not-supply-consideration-tax-notice-quashed-refund-ordered","status":"publish","type":"post","link":"https:\/\/goodsandservicetax.in\/GST\/?p=74704","title":{"rendered":"GST on liquidated damages for service-agreement breach held as compensation, not supply consideration; tax notice quashed, refund ordered"},"content":{"rendered":"<p>GST on liquidated damages for service-agreement breach held as compensation, not supply consideration; tax notice quashed, refund ordered<br \/>Case-Laws<br \/>GST<br \/>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<\/p>\n<p align=\"center\">=  =  =  =  =  =  =  =<\/p>\n<p align=\"center\"><strong>Plain text (Extract) only<\/strong><BR>For full text:-<a href=\"https:\/\/www.taxtmi.com\/highlights?id=95624\">Visit the Source <\/a><\/p>\n<p align=\"center\">=  =  =  =  =  =  =  =<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-74704","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/74704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=74704"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/74704\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=74704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=74704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=74704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}