https://www.taxtmi.com/forum/issue?id=118235 Recoveries from a supplier or customer for loss of input tax credit or non issuance of statutory certificates may be taxable if they meet the statutory tests of supply and consideration; each case must be assessed in light of relevant circular guidance. Interest and penalties may be treated as fines and outside the tax net depending on their nature. Consequences include reversal of input tax credit where applicable and documenting recoveries through financial debit notes, with a common accounting approach to treat recoveries as reductions of expenses rather than other income. en-us Wed, 16 Nov 2022 09:28:21 +0530 Thu, 23 Jan 2025 15:54:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=118235 Recoveries from a supplier or customer for loss of input tax credit or non issuance of statutory certificates may be taxable if they meet the statutory tests of supply and consideration; each case must be assessed in light of relevant circular guidance. Interest and penalties may be treated as fines and outside the tax net depending on their nature. Consequences include reversal of input tax credit where applicable and documenting recoveries through financial debit notes, with a common accounting approach to treat recoveries as reductions of expenses rather than other income. Discussion-Forum GST Wed, 16 Nov 2022 09:28:21 +0530 https://www.taxtmi.com/forum/issue?id=118235