https://www.taxtmi.com/caselaws?id=423583 The Bombay HC directed the Municipal Corporation to credit Rs. 67,94,965.02 to the applicant's bank account, ruling that GST liability on interest awarded through arbitration falls under reverse charge mechanism. The court held that the corporation, as recipient of services from a non-taxable territory supplier, must pay GST directly to the government rather than deducting it from the arbitral award amount. The contractual clause requiring inclusion of taxes did not contemplate GST on interest for delayed payments, which was not within parties' original contemplation when entering the contract. en-us Tue, 07 Jun 2022 00:00:00 +0530 Thu, 03 Apr 2025 16:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=423583 The Bombay HC directed the Municipal Corporation to credit Rs. 67,94,965.02 to the applicant's bank account, ruling that GST liability on interest awarded through arbitration falls under reverse charge mechanism. The court held that the corporation, as recipient of services from a non-taxable territory supplier, must pay GST directly to the government rather than deducting it from the arbitral award amount. The contractual clause requiring inclusion of taxes did not contemplate GST on interest for delayed payments, which was not within parties' original contemplation when entering the contract. Case-Laws GST Tue, 07 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=423583