GST: Circular issued for GST applicability on liquidated damages, compensation & penalty out of breach of contract and activities falling under “Agreeing to the obligation to refrain from an act or to tolerate an act or a situation, or to do an act” has been specifically declared to be a supply of service in para 5 (e) of Schedule II of CGST Act if the same constitutes a “supply” within the meaning of the Act. (05.08.2022)

GST:

Circular issued for GST applicability on liquidated damages, compensation & penalty out of breach of contract and activities falling under “Agreeing to the obligation to refrain from an act or to tolerate an act or a situation, or to do an act” has been specifically declared to be a supply of service in para 5 (e) of Schedule II of CGST Act if the same constitutes a “supply” within the meaning of the Act.

[Circular No. 178/10/2022-TRU dated 3rd August, 22]

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