https://www.taxtmi.com/article/detailed?id=16458 GST treatment of damages, arbitral award settlement and withdrawal of enforcement proceedings turned on whether payment made pursuant to a breach-and-settlement arrangement could be characterised as consideration for a taxable supply under Section 7 of the CGST Act read with Entry 5(e) of Schedule II. The dispute concerned a shareholders agreement, an arbitral award, and consent terms under which one party satisfied the award while the other suspended and later withdrew enforcement proceedings. The article states that damages for breach are compensatory, not consideration, and that settlement steps incidental to enforcement do not create a separate taxable supply. en-us Wed, 20 May 2026 08:31:59 +0530 Wed, 20 May 2026 08:31:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=16458 GST treatment of damages, arbitral award settlement and withdrawal of enforcement proceedings turned on whether payment made pursuant to a breach-and-settlement arrangement could be characterised as consideration for a taxable supply under Section 7 of the CGST Act read with Entry 5(e) of Schedule II. The dispute concerned a shareholders agreement, an arbitral award, and consent terms under which one party satisfied the award while the other suspended and later withdrew enforcement proceedings. The article states that damages for breach are compensatory, not consideration, and that settlement steps incidental to enforcement do not create a separate taxable supply. Articles Goods and Services Tax - GST Wed, 20 May 2026 08:31:59 +0530 https://www.taxtmi.com/article/detailed?id=16458