AAR: Compensation paid to lessor for vacating its claim, constitutes a ‘supply of service’

Goa AAR holds that ‘compensation’ paid by Goa Industrial Development Corporation (GIDC) on lessor’s deposit would clearly qualify as ‘supply’ under clause 5(e) of Schedule II of the GST Act, and therefore liable to GST; Observes that the applicant, a Govt. of Goa undertaking, entered into an agreement leasing land to parties for setting up Special Economic Zone (SEZ), which could not materialize due to protest from people; Notes that as per SC directions, GIDC was d...