https://www.taxtmi.com/caselaws?id=779914 AAR held that Minimum Guaranteed Off-take (MGO) charges are liquidated damages, not "consideration" under Section 2(31)/Section 7(1A) read with Schedule II(5)(e) of the CGST Act, and thus do not constitute a supply. The Authority found the described service of tolerating or refraining from an act is contractual, requiring a direct nexus between supply and consideration; MGO payments merely compensate for breach and are a flow of money for loss, not the object of a contract. Consequently, MGO charges are not taxable under GST. en-us Wed, 24 Sep 2025 00:00:00 +0530 Wed, 15 Oct 2025 08:27:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=779914 AAR held that Minimum Guaranteed Off-take (MGO) charges are liquidated damages, not "consideration" under Section 2(31)/Section 7(1A) read with Schedule II(5)(e) of the CGST Act, and thus do not constitute a supply. The Authority found the described service of tolerating or refraining from an act is contractual, requiring a direct nexus between supply and consideration; MGO payments merely compensate for breach and are a flow of money for loss, not the object of a contract. Consequently, MGO charges are not taxable under GST. Case-Laws GST Wed, 24 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=779914