https://www.taxtmi.com/article/detailed?id=9223 Liquidated damages are pre agreed compensation for breach intended to ensure performance, not consideration for tolerating an act; Schedule II's reference to agreeing to tolerate an act only creates a taxable supply where there is a clear consensual agreement to tolerate, and amendments to section 7 require that an activity first qualify as a supply before classification, so pure compensatory liquidated damages that do not reflect an agreement to tolerate should not be treated as supply under GST. en-us Sat, 30 May 2020 11:05:16 +0530 Sat, 30 May 2020 11:05:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=9223 Liquidated damages are pre agreed compensation for breach intended to ensure performance, not consideration for tolerating an act; Schedule II's reference to agreeing to tolerate an act only creates a taxable supply where there is a clear consensual agreement to tolerate, and amendments to section 7 require that an activity first qualify as a supply before classification, so pure compensatory liquidated damages that do not reflect an agreement to tolerate should not be treated as supply under GST. Articles Goods and Services Tax - GST Sat, 30 May 2020 11:05:16 +0530 https://www.taxtmi.com/article/detailed?id=9223