TaxTMI 
TaxTMI 
SIR,
GST IS LEVIABLE REGARDING CKONSIDERATION RECEIVED ON WORKS CONTRACT AS PER ARBITRATION AWARD
GST LEVIABLE ON ARBITRATION AWARD
07 Jun 2024 
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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. (AI Summary)
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. (AI Summary)