https://www.taxtmi.com/circulars?id=66640 GST applies to payments only when they constitute consideration for an independent contractual supply of agreeing to refrain from an act, to tolerate an act or situation, or to do an act. Payments that merely compensate for breach, statutory cancellation compensation without a toleration agreement, penalties for legal violations, cheque dishonour fines and forfeiture of earnest money where nothing is supplied in return are not consideration and are not taxable. Conversely, charges that represent ancillary facilities bundled with a principal supply (late payment acceptance, cancellation fees, early termination or prepayment facilities) are consideration for supply and taxable at the rate of the principal supply. en-us Wed, 17 Aug 2022 00:00:00 +0530 Wed, 19 Jul 2023 17:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=66640 GST applies to payments only when they constitute consideration for an independent contractual supply of agreeing to refrain from an act, to tolerate an act or situation, or to do an act. Payments that merely compensate for breach, statutory cancellation compensation without a toleration agreement, penalties for legal violations, cheque dishonour fines and forfeiture of earnest money where nothing is supplied in return are not consideration and are not taxable. Conversely, charges that represent ancillary facilities bundled with a principal supply (late payment acceptance, cancellation fees, early termination or prepayment facilities) are consideration for supply and taxable at the rate of the principal supply. Circulars GST - States Wed, 17 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/circulars?id=66640