Penalty imposed by corporation for violating guidelines not subject to GST, rules Supreme Court.

The Supreme Court ruled that penalties imposed by a corporation for guideline violations are not subject to GST. The High Court determined that the corporation cannot demand GST from the petitioners on penalties for non-attendance of leakage complaints, as there was no "supply of goods/services" from the corporation to the petitioners. GST requires proof of such supply by the tax collector to the taxpayer. The penalties were for failing to adhere to the corporation's guidelines, not for tolerating an act. The petition was dismissed. .....

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