GST on compensation received, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ received a Purchase Order from the local customer towards supply to be made prior to GST era but order cancelled by the supplier. XYZ filed a legal case against the customer and the verdict was in favour of XYZ. Therefore, the customer gave the compensation amount to XYZ but during the GST era. Whether XYZ is required to pay GST on the compensation received?

Posts / Replies

[Amit Agrawal]

NO, in my humble view.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Shilpi Jain]

No liability.

[Padmanathan Kollengode]

No GST on the compensation ordered by court

[KASTURI SETHI]

Compensation is not income and no GST is leviable.