Compensation Awarded by Court

compensation awarded by court does not fall under the term income . hence not taxable

Therefore GST too will not be charge on the same???

Yes agree with Vishesh ji

Here it may be the tolerance of act. But main condition is for furtherence of business. It is not a business. Hence GST is not applicable in my view.

@ Summit

Recently, the Maharashtra Authority for Advance Ruling ("AAR") in the case of Maharashtra State Power Generation Company Limited ("Applicant") held that Goods and Services Tax ("GST") at the rate of 18% would be payable on liquidated damages ("LD") received by the Applicant for delayed supply under a contract. The AAR has considered LD to be a consideration for agreeing to the obligation to tolerate an act or a situation, which is treated as a supply of service under para 5(e) of Schedule II of the Central Goods and Services Act, 2017 ("CGST Act")

Sum of  money (agreed-to and written into a contract) specified as the total  amount of compensation an  aggrieved by party should get, if the other party breaches certain part(s) of the contract. The contract also establishes what actions or failures to act constitute a breach

Hence if compenation you got fall under the above definition , then its a supply , cover under GST

But in your case might LD is covered since its Penalty is awarded by a competent Court, in case one of the parties takes action against the other So , it will not cover Under GST .

.... pankaj ji👍👍