https://www.taxtmi.com/caselaws?id=436179 AAR, AP ruled that liquidated damages collected by APPDCL from a logistics service provider for non-performance constitutes taxable supply under GST. The authority held that such payments, despite being termed as damages, amount to consideration for tolerating non-performance under the agreement. Following Circular 178/10/2022, these payments are incidental to the main supply and taxable at CGST and SGST rates of 9% each under chapter head 9997. The ruling clarified that liquidated damages with clear calculation formulas specified in agreements are subject to GST as consideration for supply of services. en-us Fri, 31 Mar 2023 00:00:00 +0530 Wed, 16 Apr 2025 12:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=436179 AAR, AP ruled that liquidated damages collected by APPDCL from a logistics service provider for non-performance constitutes taxable supply under GST. The authority held that such payments, despite being termed as damages, amount to consideration for tolerating non-performance under the agreement. Following Circular 178/10/2022, these payments are incidental to the main supply and taxable at CGST and SGST rates of 9% each under chapter head 9997. The ruling clarified that liquidated damages with clear calculation formulas specified in agreements are subject to GST as consideration for supply of services. Case-Laws GST Fri, 31 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=436179