GST Not Applicable on Arbitral Damages Without Supply Element: Bombay HC

Tata Sons Private Ltd. Vs Union of India (Bombay High Court) Arbitral award damages not consideration for supply — settlement in enforcement proceedings not independent agreement under Section 7 read with Entry 5(e) — IGST demand of Rs. 1524 crores quashed Principles of Law as evolved from Judgment SCOPE OF SUPPLY — SECTION 7 READ WITH SCHEDULE II ENTRY 5(e) Independent agreement is a prerequisite for Entry 5(e). Entry 5(e) of Schedule II — “agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act” — can operate only where...