https://www.taxtmi.com/caselaws?id=765514 AAAR held that the appellant's payment of liquidated damages to the counterparty arose from breach of the production-sharing contract and was not consideration for any supply of services. The payments merely compensated loss from the breach and did not reflect an agreement by the counterparty to tolerate, refrain from, or perform acts for the appellant or other concessionaires. Consequently, the settlement/ liquidated-damages payments are not taxable under GST. The impugned ruling that treated the settlement as payment for supply was erroneous, and the appellant is not liable to pay GST on the settlement fees. en-us Wed, 22 Jan 2025 00:00:00 +0530 Tue, 04 Nov 2025 14:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765514 AAAR held that the appellant's payment of liquidated damages to the counterparty arose from breach of the production-sharing contract and was not consideration for any supply of services. The payments merely compensated loss from the breach and did not reflect an agreement by the counterparty to tolerate, refrain from, or perform acts for the appellant or other concessionaires. Consequently, the settlement/ liquidated-damages payments are not taxable under GST. The impugned ruling that treated the settlement as payment for supply was erroneous, and the appellant is not liable to pay GST on the settlement fees. Case-Laws GST Wed, 22 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765514