https://www.taxtmi.com/circulars?id=66467 GST on payments arising from breach or penalty depends on whether the payment is consideration for a supply involving agreement to refrain, tolerate, or do an act; mere compensatory or punitive flows (liquidated damages, statutory penalties, cheque dishonour fines, forfeitures) are not consideration absent an independent contractual promise, whereas commercially agreed ancillary charges (cancellation fees, late payment acceptance, early termination or prepayment facilities) are consideration for supply and taxable if the principal supply is taxable. en-us Wed, 14 Sep 2022 00:00:00 +0530 Wed, 21 Jun 2023 18:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=66467 GST on payments arising from breach or penalty depends on whether the payment is consideration for a supply involving agreement to refrain, tolerate, or do an act; mere compensatory or punitive flows (liquidated damages, statutory penalties, cheque dishonour fines, forfeitures) are not consideration absent an independent contractual promise, whereas commercially agreed ancillary charges (cancellation fees, late payment acceptance, early termination or prepayment facilities) are consideration for supply and taxable if the principal supply is taxable. Circulars GST - States Wed, 14 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/circulars?id=66467