https://www.taxtmi.com/forum/issue?id=116474 Whether a penalty for delayed construction by an allottee is a taxable supply under GST depends on separating the non-taxable sale of immovable property from ancillary obligations. Valuation rules include penalties as part of consideration, and Paragraph 5(e) of Schedule II treats agreeing to tolerate an act or situation as a supply of services. An Advance Ruling held compensation by a development corporation to qualify as a supply under the toleration limb, and forum views favour treating the penalty as a separate taxable service despite the underlying immovable-property sale being exempt. en-us Fri, 12 Jun 2020 18:42:12 +0530 Thu, 23 Jan 2025 15:54:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=116474 Whether a penalty for delayed construction by an allottee is a taxable supply under GST depends on separating the non-taxable sale of immovable property from ancillary obligations. Valuation rules include penalties as part of consideration, and Paragraph 5(e) of Schedule II treats agreeing to tolerate an act or situation as a supply of services. An Advance Ruling held compensation by a development corporation to qualify as a supply under the toleration limb, and forum views favour treating the penalty as a separate taxable service despite the underlying immovable-property sale being exempt. Discussion-Forum GST Fri, 12 Jun 2020 18:42:12 +0530 https://www.taxtmi.com/forum/issue?id=116474