https://www.taxtmi.com/circulars?id=66557 GST attaches only where payment constitutes consideration for a supply - an express or implied agreement by which one party agrees to do, refrain from, or tolerate an act in return for payment. Payments that are merely compensation for breach, statutory or deterrent penalties, cheque dishonour fines, and forfeiture of earnest money or bond recoveries do not constitute consideration for tolerating or refraining and are not taxable. By contrast, charges that are consideration for ancillary facilities bundled with a principal taxable supply (e.g., cancellation fees, late payment charges, early termination or prepayment penalties) are taxable and assessed as part of the principal supply; exempt principal supplies render such ancillary charges non taxable. en-us Tue, 23 Aug 2022 00:00:00 +0530 Wed, 05 Jul 2023 18:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=66557 GST attaches only where payment constitutes consideration for a supply - an express or implied agreement by which one party agrees to do, refrain from, or tolerate an act in return for payment. Payments that are merely compensation for breach, statutory or deterrent penalties, cheque dishonour fines, and forfeiture of earnest money or bond recoveries do not constitute consideration for tolerating or refraining and are not taxable. By contrast, charges that are consideration for ancillary facilities bundled with a principal taxable supply (e.g., cancellation fees, late payment charges, early termination or prepayment penalties) are taxable and assessed as part of the principal supply; exempt principal supplies render such ancillary charges non taxable. Circulars GST - States Tue, 23 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/circulars?id=66557