Case Law Details
In Re India Optel Limited (GST AAR Uttarakhand)
GST is applicable on Liquidated Damages recovered from vendors: AAR Uttarakhand
In the case “In Re India Optel Limited (GST AAR Uttarakhand),” the issue at hand was the applicability of GST on liquidated damages (LD) recovered by M/s India Optel Limited from their vendors. The ruling was sought under Section 97 of the Central Goods and Services Tax (CGST) Act, 2017, and the Uttarakhand State Goods & Service Tax Act, 2017.
M/s India Optel Limited, a registered entity with GSTIN 05AAGCI2642P5Z7, engaged in manufacturing and entered into contracts with various vendors for the supply of goods and services. These contracts included a clause for liquidated damages in case of delayed delivery or breach of contract by the vendors. Specifically, the clause stipulated a penalty of 0.5% of the contract price for each week of delay, capped at 10% of the contract value.
Applicant’s Position
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