https://www.taxtmi.com/caselaws?id=756530 The AAR Maharashtra ruled that penalties, late fees, and fines levied by RBI for legal contraventions are not taxable under GST as they serve disciplinary and deterrent purposes rather than constituting consideration for services. Similarly, penalties imposed on third-party vendors for contractual non-performance or under-performance were held to be liquidated damages compensating RBI for losses, not consideration for supply of services. The authority determined these activities do not constitute taxable supplies under GST provisions. en-us Wed, 31 Jul 2024 00:00:00 +0530 Thu, 08 May 2025 10:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756530 The AAR Maharashtra ruled that penalties, late fees, and fines levied by RBI for legal contraventions are not taxable under GST as they serve disciplinary and deterrent purposes rather than constituting consideration for services. Similarly, penalties imposed on third-party vendors for contractual non-performance or under-performance were held to be liquidated damages compensating RBI for losses, not consideration for supply of services. The authority determined these activities do not constitute taxable supplies under GST provisions. Case-Laws GST Wed, 31 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756530