Exemption from GST on Liquidated Damages: Arbitral Award & Mutual Agreement

In re TPSC (India) Private Limited (GST AAR Telangana)

Whether the contract completed during the Pre-GST period and the consequential demand based on the completed contract can be brought to assessment under GST Act, 2017?

Ruling: No. In view of the clarification issued vide CBIC circular No.178/10/2022, dated: 03-08-2022 and in terms of the transitional provisions under CGST ACT, 2017 discussed supra.

Whether the liquidated damages, without any supply of materials and labor be assessed to GST under GST Act, 2017?

Ruling: No. In view of the clarification issued vide CBIC circular No.178/10/2022, dated: 03-08-2022 and in terms of the transitional provisions under CGST ACT, 2017 discussed supra.

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