No GST on Arbitration Interest & Costs from Pre-GST Contracts: Gujarat AAR

In re Shoft Shipyard P Ltd (GST AAR Gujarat) Shoft Shipyard P Ltd. is not liable for GST on interest and arbitration costs received from Goa Shipyard Ltd. (GSL) concerning a shipbuilding contract from 2009. The core issue was whether these receipts, stemming from an arbitration award for a pre-GST era supply, attract Goods and Services Tax. The applicant had completed a ship hull construction and towing for GSL, with most payments received, except for ₹1.39 crore which GSL withheld due to an alleged mistake in another contract. Shoft Shipyard wrote off this amount in 2012-13 but initiated ar...