https://www.taxtmi.com/caselaws?id=798044 GST does not apply to a penalty recovered from an employee for stock shortage arising during employment. Section 7 read with paragraph 5(e) of Schedule II applies only where a supply of services exists, including an agreement to refrain from, tolerate, or undertake an act. A stock-shortage penalty imposed within the employer-employee relationship is not consideration for any supply of goods or services between a supplier and recipient. The recovery therefore remains outside the scope of taxable supply under GST. en-us Fri, 14 Aug 2026 00:00:00 +0530 Tue, 01 Sep 2026 08:26:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798044 GST does not apply to a penalty recovered from an employee for stock shortage arising during employment. Section 7 read with paragraph 5(e) of Schedule II applies only where a supply of services exists, including an agreement to refrain from, tolerate, or undertake an act. A stock-shortage penalty imposed within the employer-employee relationship is not consideration for any supply of goods or services between a supplier and recipient. The recovery therefore remains outside the scope of taxable supply under GST. Case-Laws GST Fri, 14 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798044