Taxability of amount deducted towards (i) penalty as per terms of contract (ii) Liqudated damages as per terms of contract in GST
Frah Saeed Answered question August 22, 2020
In our view these should not be exigible to GST. However the Deptt. will raise demand considering clause 5(e) to Schedule II. Further in various ruling AAR have held that penalty / LD will be subject to GST.. Ref: Mah AAR Maharshtra State Power generation Co ltd..
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Frah Saeed Answered question August 22, 2020