https://www.taxtmi.com/circulars?id=66094 GST liability depends on whether a payment is consideration for a supply under the declared service of agreeing to refrain from, tolerate, or do an act. That service requires an express or implied agreement and reciprocal consideration; absent such contractual arrangement, compensatory payments arising from breach, statutory cancellations, penalties, cheque dishonour fines or forfeitures are mere flows of money and not taxable. Conversely, contractual charges that constitute ancillary or independently bargained facilities (late payment acceptance, cancellation fees, prepayment penalties) are consideration for supply and taxable alongside the principal supply unless the principal supply is exempt. en-us Tue, 27 Sep 2022 00:00:00 +0530 Thu, 15 Dec 2022 17:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=66094 GST liability depends on whether a payment is consideration for a supply under the declared service of agreeing to refrain from, tolerate, or do an act. That service requires an express or implied agreement and reciprocal consideration; absent such contractual arrangement, compensatory payments arising from breach, statutory cancellations, penalties, cheque dishonour fines or forfeitures are mere flows of money and not taxable. Conversely, contractual charges that constitute ancillary or independently bargained facilities (late payment acceptance, cancellation fees, prepayment penalties) are consideration for supply and taxable alongside the principal supply unless the principal supply is exempt. Circulars GST - States Tue, 27 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/circulars?id=66094