GST On Liquidated Damages, Compensation And Penalty Arising Out Of Breach Of contract: CBIC

The  Central Board of Indirect Taxes and Customs (CBIC)  has issued a circular on the GST applicability on liquidated damages, compensation, and penalties arising out of breach of contract or other provisions of law. There has to be an express or implied agreement, oral or written, to do or abstain from doing something against payment of consideration for doing or abstaining from such an…