Liquidated Damages & Forfeited Deposits for MSETCL Not “Supply” Under GST

In re Maharashtra State Electricity Transmission Company Ltd. (GST AAR Maharashtra) Maharashtra State Electricity Transmission Company Limited (MSETCL), a prominent state transmission utility and a wholly-owned entity of the Maharashtra Government, has received a ruling from the Authority for Advance Ruling (AAR) that several of its revenue streams, typically categorized as penalties or forfeited amounts, do not attract Goods and Services Tax (GST). MSETCL, primarily engaged in the transmission of electricity—an activity exempt from GST under Notification No. 12/2017-CT (R), SI. No. 25—sou...