https://www.taxtmi.com/article/detailed?id=11420 Recovery of liquidated damages from vendors for contractual delay is not consideration for a service and therefore not taxable as service tax; such payments are compensatory or penal in nature, intended to deter default, and do not amount to payment for tolerating an act. The tribunal allowed the appeal and GST guidance later clarified that GST is not leviable on such liquidated damages, compensation or penalties unless there is an underlying taxable supply with reciprocal consideration. en-us Mon, 22 May 2023 13:43:49 +0530 Mon, 22 May 2023 13:43:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=11420 Recovery of liquidated damages from vendors for contractual delay is not consideration for a service and therefore not taxable as service tax; such payments are compensatory or penal in nature, intended to deter default, and do not amount to payment for tolerating an act. The tribunal allowed the appeal and GST guidance later clarified that GST is not leviable on such liquidated damages, compensation or penalties unless there is an underlying taxable supply with reciprocal consideration. Articles Service Tax Mon, 22 May 2023 13:43:49 +0530 https://www.taxtmi.com/article/detailed?id=11420