GST on liquidated damages - the controversy continues

A clarificatory circular [1]  dated 03 August 2022 (‘Circular’) was issued by the Indian Tax Authorities  inter alia  on applicability of Goods and Services Tax (‘GST’) on ‘liquidated damages’. It was expected that the Circular would put to rest the ongoing litigation and uncertainty around taxability of liquidated damages. The Circular had explicitly mentioned (along with examples)…