GST Applicability on Liquidated Damages / Penalty deduction from contractor’s bills

By | June 7, 2018
(Last Updated On: June 7, 2018)

Question : Whether deduction of Liquidity Damage (LD)/Penalty deduction from contractor’s bills and charging Penalty for non-lifting of coal till targeted minimum level to Annual Contractual Quantity (ACQ) will attract GST?

Answer: Yes, it is a service being “tolerating an act” as per Schedule II of the CGST Act,2017 thus GST shall apply.

Free Study material on Liquidated Damages under GST

[Video] GST on Liquidated Damages / Fine / Penalty for non performance of Contract

GST Applicability on Liquidated Damages / Penalty deduction from contractor’s bills

No GST on fines and penalty imposed by Government / local authority

No GST on LD / Penalty in case of contract with Government / local authority

GST on Cancellation of Agreement to Sell

GST on Government Services FAQs

Related GST FAQ

GST on Mining Sector : FAQ

GST on Handicraft Sector : FAQ

150 GST FAQ’s Replied by Govt of India

GST Tweet -100 FAQs replied by Govt ; Compilation

GST Rates FAQs on queries of Various Sectors Clarified by Govt

GST FAQs on queries of Various Sectors : Issued by Govt

GST FAQs for Traders

GST Handbook – Free Download

GST on Drugs and Pharmaceuticals : FAQ

GST on E Commerce : FAQ

GST on Food Processing Industry : FAQ

GST on Textile : FAQ’s

GST on Export : FAQ’s

GST on MSME : FAQ’s

FAQs on Composition Levy under GST ( India )

Drawback after GST regime

GSTIN / PAN and Invoice information in Shipping Bill

Bond or LUT along with Shipping Bill

Related Topic on GST

TopicClick Link
GST Acts Central GST Act and States GST Acts
GST RulesGST Rules
 GST FormsGST Forms
GST RatesGST Rates
GST NotificationsGST Act Notifications
GST CircularsGST Circulars
 GST JudgmentsGST Judgments
GST Press ReleaseGST Press Release
GST BooksBest Books on GST in India
GST CommentaryTopic wise Commentary on GST Act of India
GST You Tube ChannelTaxHeal You Tube Channel
GST Online CourseJoin GST online Course
GST HistoryGST History and Background Material

gst leviable on liquidated damages ,gst implication on liquidated damages ,rate of gst on liquidated damages, is there gst on liquidated damages, gst on liquidated damages india,is gst payable on liquidated damages,liquidated damages under gst,taxation of liquidated damages

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source
New Books Released on Tax , GST and law

Leave a Reply

Your email address will not be published. Required fields are marked *