Tag Archives: rate of gst on liquidated damages

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

By | 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… Read More »