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        Government Services Tolerating Contract Non-Performance Exempt from GST When Fines or Damages are Payable

        Services provided by the Central Government, State Government, Union territory, or local authority that involve tolerating non-performance of a contract are exempt from GST, including CGST, UTGST, SGST, and IGST. This exemption applies when consideration, such as fines or liquidated damages, is payable to these governmental entities under the contract in question.

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