https://www.taxtmi.com/article/detailed?id=16970 GST treatment of an arbitral-award settlement depends on whether an independent agreement requires a party, for consideration, to tolerate an act, refrain from an act, or perform an act. Payment solely towards damages awarded for contractual breach remains compensatory, even where enforcement proceedings are withdrawn or suspended upon satisfaction of the award. Such enforcement steps may be incidental to discharge of the award rather than a separate supply. CBIC guidance supports the position that breach-related damages are not consideration for taxable supply without a specific agreement and consideration for toleration or forbearance. en-us Sat, 18 Jul 2026 08:30:09 +0530 Sat, 18 Jul 2026 08:30:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=16970 GST treatment of an arbitral-award settlement depends on whether an independent agreement requires a party, for consideration, to tolerate an act, refrain from an act, or perform an act. Payment solely towards damages awarded for contractual breach remains compensatory, even where enforcement proceedings are withdrawn or suspended upon satisfaction of the award. Such enforcement steps may be incidental to discharge of the award rather than a separate supply. CBIC guidance supports the position that breach-related damages are not consideration for taxable supply without a specific agreement and consideration for toleration or forbearance. Articles Goods and Services Tax - GST Sat, 18 Jul 2026 08:30:09 +0530 https://www.taxtmi.com/article/detailed?id=16970