GST on compensation received

[Kaustubh Karandikar]

XYZ received a Purchase Order from the local customer towards supply to be made prior to GST era but order cancelled by the supplier. XYZ filed a legal case against the customer and the verdict was in favour of XYZ. Therefore, the customer gave the compensation amount to XYZ but during the GST era. Whether XYZ is required to pay GST on the compensation received?

[Amit Agrawal]

NO, in my humble view.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Shilpi Jain]

No liability.

[Padmanathan KV]

No GST on the compensation ordered by court

[KASTURI SETHI]

Compensation is not income and no GST is leviable.

AI Summary

GST on compensation: compensation for cancelled pre GST supply received post GST is not taxable consideration under GST. Whether GST applies to court-ordered compensation received after GST for a cancelled pre GST supply: commentary uniformly advises no GST liability, treating such compensation as not taxable consideration and not income for GST purposes.