Decree-holder not liable to pay 18% GST on interest received under arbitral award; execution direction quashed

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Full Text of the Document

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....The HC allowed the petition and quashed and set aside the impugned direction of the executing court that the judgment-debtor pay GST at 18% on part-payment of interest under an arbitral award. The court held that decree-holders are not liable to pay GST on the interest component received pursuant to execution of the arbitral award, in line with the Advance Ruling Authority's determination. Consequential directions for GST payment were annulled, and the impugned orders dated 02.08.2020 were set aside. The petition is disposed of, with no requirement for the decree-holder to remit GST on the said interest receipts.....