Fair-rent assessment requires consideration of lease terms, valuation principles and prevailing market rent; the certificate was quashed for fresh rev...
Document Identification Number compliance is satisfied when electronically communicated orders are promptly authenticated through a correctly identifi...
AAR held that liquidated damages paid by the applicant to the concessionaire under the concession agreement do not constitute consideration for a taxable supply and are not subject to GST; accordingly, the concessionaire is not entitled to avail input tax credit in respect of such receipts. The Authority applied Circular No.178/10/2022-GST reasoning that where damages merely compensate for loss without any express or implied agreement by the recipient to tolerate or perform acts for the payer, such payments are a monetary compensation flow and not taxable. AAR further noted CBIC clarification on penal charges as analogous, observing the charges enforce contractual discipline for breaches. No other questions required adjudication.
AAR held that liquidated damages paid by the applicant to the concessionaire under the concession agreement do not constitute consideration for a taxable supply and are not subject to GST; accordingly, the concessionaire is not entitled to avail input tax credit in respect of such receipts. The Authority applied Circular No.178/10/2022-GST reasoning that where damages merely compensate for loss without any express or implied agreement by the recipient to tolerate or perform acts for the payer, such payments are a monetary compensation flow and not taxable. AAR further noted CBIC clarification on penal charges as analogous, observing the charges enforce contractual discipline for breaches. No other questions required adjudication.
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