Goods And Services Tax (GST) Implications On ‘Liquidated Damages

'Liquidated Damages' means a compensation specified under the contract agreed between the parties for an estimated loss and which is required to be paid upon failure of either party to perform its obligations. It is important to note that 'Liquidated Damages' is not defined under the Indian Contract Act, 1872. However, there are provisions that protect rights and privileges of parties in case of n…