Eye Share : GST on liquidated damages – A subject matter of constant debate

The applicability or otherwise of GST/erstwhile Indirect taxes on liquidated damages has always been a subject matter of interpretation and continues to be debated upon in GST regime. In terms of Section 7(1)(d) of CGST Act r/w Entry 5 (e) of Schedule II, agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act, have been regarded as a “deemed supply” transaction.Mr. Pankit Shah (Principal, Dhruva Advisors, LLP) along w...