AAR: Liquidated damages levied on supply/O&M contract, liable to GST

Andhra Pradesh AAR holds that GST would be applicable on “Liquidated Damages” (LDs) levied on supply and maintenance contracts as well as project construction contracts in terms of Schedule Entry No. 35 (Other services) of Notification No. 11/2017-Central/State Tax (Rate); Notes that, applicant, a Central PSU under the Ministry of Steel, having an integrated steel plant, entered into a clause to deduct Liquidated Damages (LD) in case of default by contractor/vendor to com...