Taxability of contractual penalties: GST applies only when payment is consideration for an independent agreement. GST applies to payments only when there is an express or implied contractual agreement under which one party undertakes to do, refrain from, or tolerate an act and the other pays consideration for that obligation. Payments that merely compensate for breach or are statutory penalties with no contractual offer to tolerate (such as liquidated damages, forfeiture of earnest money in certain bids, statutory compensation under court orders, and fines for legal violations) are not consideration for a supply and are not taxable. Ancillary commercial charges (cancellation fees, late payment fees, early termination fees) that compensate for a facility provided are taxable as part of the principal supply unless that principal supply is exempt.