Explore how Section 53 enables destination-based GST revenue settlements and how Section 16(2)(c) safeguards States against tax leakage.
The Court held that damages paid under an arbitral award do not qualify as consideration for a taxable service under GST. The ruling clarifies that the “toleration of an act” provision requires a separate agreement and cannot cover compensation payments.
The omission of Section 13(8)(b) applies only prospectively from 30 March 2026, as no saving clause exists. Past transactions and liabilities remain governed by the earlier law. The ruling clarifies that retrospective benefit cannot be inferred.
The court held that ITC can be transferred even across states when a business is transferred as a going concern. This ensures seamless credit flow and prevents restrictive interpretation of GST provisions.
