https://www.taxtmi.com/article/detailed?id=8418 GST is chargeable on liquidated damages where the contract treats LD as consideration for tolerating delay rather than a price reduction. Such LD, arising from an agreement that establishes liability upon delay, qualifies as a supply of service under the activity of tolerating an act. Where LD is an independent levy and not a contract price adjustment, it is classifiable as a miscellaneous taxable service, the time of supply is when the liability crystallises, and input tax credit is available subject to statutory conditions. en-us Sat, 16 Mar 2019 07:27:21 +0530 Sat, 16 Mar 2019 07:27:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=8418 GST is chargeable on liquidated damages where the contract treats LD as consideration for tolerating delay rather than a price reduction. Such LD, arising from an agreement that establishes liability upon delay, qualifies as a supply of service under the activity of tolerating an act. Where LD is an independent levy and not a contract price adjustment, it is classifiable as a miscellaneous taxable service, the time of supply is when the liability crystallises, and input tax credit is available subject to statutory conditions. Articles Goods and Services Tax - GST Sat, 16 Mar 2019 07:27:21 +0530 https://www.taxtmi.com/article/detailed?id=8418