Amount received through enchashment of bg subject to gst?
This query is : Resolved
14 July 2019
We are trading company. Bank guarantee furnished by Contractor has encashed by our company. Kindly advise that can we book this amount (BG amount) under Misc Income? Is this income is subject to GST? Kindly help.
CA R SEETHARAMAN
(Expert)
14 July 2019
The Authority for Advance Rulings (AAR) has ruled that payments in respect to nonperformance of a contract would be liable to goods and services tax (GST). ... Liquidated damages are payments in lieu of non-performance of a contract.
14 July 2019
Thanks. Could you directly reply whether I shall pay GST on the amounts we received through encasement of bank guarantee.
CA R SEETHARAMAN
(Expert)
15 July 2019
Pay GST on the amounts you received through encasement of bank guarantee.
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