Pon Pure Chemical India Private Limited ., In re
Date: June 23, 2026
Subject Matter
Compensation from Transporters for Loss or Damage Not Taxable as Supply of Services
Summary
The Authority for Advance Ruling has held that compensation received by the applicant from transporters for losses incurred due to breach of contract (e.g., material shortage, damage, theft) is not considered a "Supply of services" under para 5(e) of…
FULL TEXT OF THE ORDER OF APPELLATE AUTHORITY FOR ADVANCE RULING, GUJARAT M/s. Pon Pure Chemical India Private Limited, 2 nd Floor, 341, Sector 1A, Gandhidham, Kachchh, Gujarat-370201 [for short—applicant’] is a company incorporated under the provisions of the Companies Act, 1956 registered under GST having GSTIN No.24AACCP3026E1ZZ. 2. The applicant has engaged various transporters for transportat…