Supply or not - liquidated damages collected for non-performing ...

Liquidated Damages for Non-Performance Classified as Service Supply u/s 7, Subject to 18% GST.

April 6, 2023

Case Laws GST AAR

Supply or not - liquidated damages collected for non-performing of an act - In the light of section 7 read with definition of consideration u/s 2(31), liquidity damages paid by defaulting party to the non-defaulting party for tolerating the act of non performance or breach of contract have to be treated as consideration for tolerating of an act or a situation under an agreement and hence such an activity constitutes supply of service - rate of GST is 18% - AAR

View Source

← Previous Next →

Supply or not - liquidated damages collected for non-performing ...

Liquidated Damages for Non-Performance Classified as Service Supply u/s 7, Subject to 18% GST.

April 6, 2023

Case Laws GST AAR

You may also like:

The Advance Ruling Authority determined that the levy of GST on liquidated damages constitutes a supply of service under the Central Goods and Services Tax Act....

Levy of GST - Supply or not - compensation amounts such as liquidated damages/trade settlement/damages collected from the customers for non-performing of contractual...

The SC clarified that affiliation services provided by universities to colleges are taxable at 18% GST rate. Affiliation services by educational boards/councils to...

Levy of GST - Composite supply or Principal supply - The street lighting activity undertaken under the Energy Performance Contract dated 1st March 2019 (which involves...

GST rates on supply of affordable and non-affordable residential apartments in a real estate project (REP) are 1.5% and 7.5% respectively, while commercial apartments...

This circular clarifies various GST-related issues based on recommendations of the 54th GST Council meeting. Key points are: GST at 18% applicable on affiliation...

Classification of services - composite supply or not - services by way of construction of residential property is supplied along with the supply of 'other services' -...

Levy of GST - Supply or not - liquidated damages recoverable by the applicant from Belectric India on account of delay in commissioning - time of supply - The contract...

Eligibility criteria for GST exemption on hostel accommodation services, the requirement for GST registration based on turnover, the applicable GST rate for hostel...

Classification of supply - supply of services or not - activity of fabricating and mounting Tankers, Tippers, etc. on the chassis provided by the owner of such chassis i....

Classification of supply - composite supply of services or mixed supply - services for a “Single consolidated Rate” as a package - services like Transportation and...

Levy of GST - man power services provided - The Subject Supply for the purpose of Security, Cleaning and Housekeeping services provided to the cited schools are exempt...

Scope of supply - supply of goods or supply of services - printing text books, Lottery tickets, stationery items for State Government - All the activities as mentioned...

Classification of goods - rate of GST - The authority ruled that outboard motor engines and spare parts supplied for use in fishing vessels fall under Customs Tariff...

The case involves a query regarding GST exemption for hostel accommodation provided to students and working women. The Authority for Advance Ruling, Tamil Nadu,...

Quick Updates: