GST LEVIABLE ON ARBITRATION AWARD

[gunda ashok kumar]

SIR,

GST IS LEVIABLE REGARDING CKONSIDERATION RECEIVED ON WORKS CONTRACT AS PER ARBITRATION AWARD

[Shilpi Jain]

Need further details regarding the nature of the award. 

Is it any compensation for beach of contract? - no GST liability. 

Is it for escalation or any other matter?

Pls share further details

[KASTURI SETHI]

The query is too brief to reply. Pl. elaborate query  with full facts and circumstances.

AI Summary

GST leviability on arbitration awards hinges on whether amounts are compensatory or substitute contractual remuneration. GST leviability on arbitration awards turns on the payment's character: pure compensation for breach generally does not constitute taxable consideration and is not subject to GST, whereas amounts replacing contractual remuneration (such as escalation or other price-related payments) are likely taxable; factual specifics and allocation among heads of award are necessary to determine treatment.