https://www.taxtmi.com/article/detailed?id=10607 Circular No. 178 clarifies that a declared service-agreeing to do, abstain from, or tolerate an act-is taxable only where an express or implied agreement makes payment consideration for that promise. Purely compensatory payments, true liquidated damages, forfeited earnest money and statutory fines are not consideration and not taxable. Conversely, cancellation fees, late payment charges and other supplier-imposed facilitation fees that are ancillary to a principal supply are assessable at the same rate as that principal supply. Electricity charges and specified statutory compensations remain non-taxable as exempt or non-consideration receipts. en-us Tue, 16 Aug 2022 09:06:42 +0530 Tue, 16 Aug 2022 09:06:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=10607 Circular No. 178 clarifies that a declared service-agreeing to do, abstain from, or tolerate an act-is taxable only where an express or implied agreement makes payment consideration for that promise. Purely compensatory payments, true liquidated damages, forfeited earnest money and statutory fines are not consideration and not taxable. Conversely, cancellation fees, late payment charges and other supplier-imposed facilitation fees that are ancillary to a principal supply are assessable at the same rate as that principal supply. Electricity charges and specified statutory compensations remain non-taxable as exempt or non-consideration receipts. Articles Goods and Services Tax - GST Tue, 16 Aug 2022 09:06:42 +0530 https://www.taxtmi.com/article/detailed?id=10607