TaxTMI 
TaxTMI 
Hi I m working in a firm and digned a bond for 3 years or 1lakh rs. Now Do i have to pay gst also on penalty of 1lakh and can i get it ireimbursed
In this case who has to pay gst me or firm because I m not gegetti any sale or service
Pls clarify
Gst on bond money
08 Apr 2018 
2 Replies 
4873 Views Asked by
GST on bond penalties may be chargeable on enforcement, with employer accounting and reimbursement depending on HR policy.
Applicability of GST on bond penalties: advisory views differ-one view treats the penalty as directly subject to GST; the other treats GST as chargeable when the employer enforces the contractual penalty, with the employer accounting for tax and any reimbursement governed by HR policy. Mention is made that enforceability of bond recovery may be constrained where statutory machinery is lacking. (AI Summary)
Applicability of GST on bond penalties: advisory views differ-one view treats the penalty as directly subject to GST; the other treats GST as chargeable when the employer enforces the contractual penalty, with the employer accounting for tax and any reimbursement governed by HR policy. Mention is made that enforceability of bond recovery may be constrained where statutory machinery is lacking. (AI Summary)