Lack of clarity on GST paid on liquidated damages may lead to litigation

The government has clarified the applicability of the  goods and services tax  (GST) on various items, but its silence on the tax paid on liquidated damages in the past could lead to litigations. For transactions conducted from July 1, the  Central Board of Indirect Taxes and Customs  (CBIC) has clarified that there will be no  GST  on liquidated damages — these are p…