https://www.taxtmi.com/circulars?id=67364 GST applies to payments only when they are consideration for an agreement to refrain, tolerate or do an act under paragraph 5(e) of Schedule II; absent an express or implied contractual promise and a nexus between supply and payment, liquidated damages, statutory compensation, fines, forfeitures and penalties that merely compensate for breach, deter violations, or flow from statutory orders are not supplies and not taxable, whereas payments that constitute consideration for ancillary or facilitation services (like cancellation fees, late payment acceptance, or pre payment/early termination facilities) are taxable and assessed with the principal supply. en-us Mon, 08 Aug 2022 00:00:00 +0530 Tue, 10 Mar 2026 14:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=67364 GST applies to payments only when they are consideration for an agreement to refrain, tolerate or do an act under paragraph 5(e) of Schedule II; absent an express or implied contractual promise and a nexus between supply and payment, liquidated damages, statutory compensation, fines, forfeitures and penalties that merely compensate for breach, deter violations, or flow from statutory orders are not supplies and not taxable, whereas payments that constitute consideration for ancillary or facilitation services (like cancellation fees, late payment acceptance, or pre payment/early termination facilities) are taxable and assessed with the principal supply. Circulars GST - States Mon, 08 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/circulars?id=67364