https://www.taxtmi.com/caselaws?id=774124 AAR Kerala ruled that cancellation of a lease agreement executed under pre-GST regime does not constitute taxable supply under GST Act. The proportionate refund received by applicant for unexpired lease period is not liable to GST as it does not involve supply of service. Citing CBIC Circular No. 178/10/2022-GST regarding coal block cancellation compensation, AAR held that refund is merely return of consideration for unutilized period, not contractual compensation requiring performance or tolerance of any act. Transaction falls outside scope of Section 7 CGST Act 2017. en-us Wed, 02 Apr 2025 00:00:00 +0530 Thu, 03 Jul 2025 08:34:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774124 AAR Kerala ruled that cancellation of a lease agreement executed under pre-GST regime does not constitute taxable supply under GST Act. The proportionate refund received by applicant for unexpired lease period is not liable to GST as it does not involve supply of service. Citing CBIC Circular No. 178/10/2022-GST regarding coal block cancellation compensation, AAR held that refund is merely return of consideration for unutilized period, not contractual compensation requiring performance or tolerance of any act. Transaction falls outside scope of Section 7 CGST Act 2017. Case-Laws GST Wed, 02 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774124