https://www.taxtmi.com/article/detailed?id=16359 GST on settlement payments made in satisfaction of an arbitral award cannot be sustained by recharacterising the withdrawal of enforcement proceedings as toleration of breach or forbearance. The Bombay High Court held that payment made under the award and consent terms did not amount to supply under Section 7 of the CGST Act, because the consent terms did not create an independent commercial bargain for a taxable service and withdrawal of proceedings was only a legal consequence of satisfaction of the award. Entry 5(e) of Schedule II cannot independently create taxability where supply is absent. en-us Wed, 06 May 2026 08:33:28 +0530 Wed, 06 May 2026 08:33:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=16359 GST on settlement payments made in satisfaction of an arbitral award cannot be sustained by recharacterising the withdrawal of enforcement proceedings as toleration of breach or forbearance. The Bombay High Court held that payment made under the award and consent terms did not amount to supply under Section 7 of the CGST Act, because the consent terms did not create an independent commercial bargain for a taxable service and withdrawal of proceedings was only a legal consequence of satisfaction of the award. Entry 5(e) of Schedule II cannot independently create taxability where supply is absent. Articles Goods and Services Tax - GST Wed, 06 May 2026 08:33:28 +0530 https://www.taxtmi.com/article/detailed?id=16359