TaxTMI 
TaxTMI 
Applicability of GST on penalty collected by RERA
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....pplicability of GST on penalty collected by RERA<br> Query (Issue) Started By: - Bibhu Tripathy Dated:- 21-3-2021 Last Reply Date:- 17-6-2021 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Respected experts, my queries are: 1. Whether penalty collected by RERA is subject to GST as per Schdule-II. As per sl. No 62 of note. 12/2017 GST rate it is not exempted as RERA is not a local autho....
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....rity? 2. Whether fees deposited to GST IS subject to GST. With regards Reply By ABHISHEK TRIPATHI: The Reply: Dear Sir, Personally, I think the statutory penalty imposed under RERA Act should not fall prey of paragraph 5(e) of the Schedule II. Imagine a situation calling these statutory penalties as a 'supply of service', who is supplying these services? Authority? Act? Now they have become s....
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....upplier. This liquidated damage is just a chaos which has to be settled by Hon'ble Courts as early as possible. Reply By ABHISHEK TRIPATHI: The Reply: Apologies, I didn't get your Q.2. Reply By Ganeshan Kalyani: The Reply: Sir, I agree with your view on liquidated damage. In fact it is not an income, then why GST? Reply By Bibhu Tripathy: The Reply: second question is whether RERA is liable....
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.... to pay any GST for the fees collected from various persons. The doubt emanates from the fact that the penalty us for non performing as per the contracts. Reply By KASTURI SETHI: The Reply: Fee for what purpose ? Pl. elaborate regarding second query. It depends upon the nature and purpose of fee. Reply By KASTURI SETHI: The Reply: I strongly agree with Sh. Abhishek Tripathi, Sir. It appears ....
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....that such clause has been created to garner revenue. The definition of 'service' should be amended to exclude such clause/provision with a purpose not to penalize any person who is already a victim of unforeseeable circumstances. Reply By YAGAY andSUN: The Reply: Penalty cannot be treated at part with LD.<br> Discussion Forum - Knowledge Sharing ....