Liquidated damages in certain cases to draw 18% GST, rules Andhra AAR

Liquidated damages received by a service receiver from a service provider for not meeting terms of contract would attract 18 per cent goods and services tax (GST) in certain cases, the authority for advance rulings (AAR) in Andhra Pradesh has ruled.  Liquidated damages are the sum that one party receives when the other party fails to meet provisions of a contract between them. The ruling was…