GST on Compensation.

Yes it will amount to 'tolerating an act' i.e. supply of service. GST leviable @ 18%.

Yes gst levied at 18%

Definitely yes. Period.

Under service tax law, service tax is levied on service.

Service means any activity carried out by one person for another.

Activity can either be active or passive.

The link below should convey the above message:

https://www.cbec.gov.in/resources...

(PS: Please don't read logic into a tax law.)

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Aravindhan Paulpandi, worked at Canara Bank (1979-2014)

Answered Jan 14

No more Service Tax ! After 1st July 2017, it is GST.

Under GST regime,consideration in relation to the supply of goods or services includes

……

(b) the monetary value of any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the recipient or by any other person …..

Compensation paid for breach of a contract comes under the above provision and so such compensation attracts 18% GST in the hands of recipient.