https://www.taxtmi.com/caselaws?id=421150 The AAR ruled that liquidated damages and penalties received by the coal company from contractors for contract breaches constitute consideration for tolerating acts or situations, making them taxable as supply of services under GST. Referring to Section 55 of Indian Contract Act and Entry 5(e) of Schedule II to CGST Act, the Authority determined these payments represent forbearance, not price adjustments. The amounts are subject to 9% CGST and 9% SGST as consideration received for tolerating contractual non-performance. en-us Fri, 08 Apr 2022 00:00:00 +0530 Wed, 02 Apr 2025 15:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=421150 The AAR ruled that liquidated damages and penalties received by the coal company from contractors for contract breaches constitute consideration for tolerating acts or situations, making them taxable as supply of services under GST. Referring to Section 55 of Indian Contract Act and Entry 5(e) of Schedule II to CGST Act, the Authority determined these payments represent forbearance, not price adjustments. The amounts are subject to 9% CGST and 9% SGST as consideration received for tolerating contractual non-performance. Case-Laws GST Fri, 08 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=421150