https://www.taxtmi.com/caselaws?id=772799 The AAR Maharashtra ruled that liquidated damages, penalties, and forfeiture of security deposits recovered by MSETCL from contractors for breach of contract do not constitute taxable supply under GST. The authority held that these amounts are recovered as penalties to discourage non-performance rather than as consideration for any service. Similarly, write-back of old unclaimed creditor balances and earnest money deposits after three years were deemed mere accounting adjustments without supply element, thus falling outside GST purview. en-us Mon, 28 Apr 2025 00:00:00 +0530 Fri, 13 Jun 2025 08:41:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772799 The AAR Maharashtra ruled that liquidated damages, penalties, and forfeiture of security deposits recovered by MSETCL from contractors for breach of contract do not constitute taxable supply under GST. The authority held that these amounts are recovered as penalties to discourage non-performance rather than as consideration for any service. Similarly, write-back of old unclaimed creditor balances and earnest money deposits after three years were deemed mere accounting adjustments without supply element, thus falling outside GST purview. Case-Laws GST Mon, 28 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772799