IS GST applicable if we paid settelemet Amount to other party
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Quick Summary
Whether Goods and Services Tax (GST) applies to a settlement payment depends entirely on the nature of that settlement. If the payment is a loan repayment, GST is generally not applicable. However, if the settlement is in exchange for goods or services, GST may be applicable and will depend on factors like the supply, place of supply, and whether the transaction is considered a 'supply' under Section 7 of the CGST Act 2017. More specific details about the transaction are needed for a definitive answer.
To check whether gst is applicable or not, we have to see whether the said transaction is covered in sec7.
once its satisfies sec 7, then the tax is levied in sec 9.
sec 7 of cgst act 2017, states that supply includes all forms of supply involving consideration made in course or furtherance of bussiness.
and supply inncludes.. the transactions which are mentioned in sch 1 without consideration. the transactions constituting supply and mentioned in sch 2.
refer sec 7 and sch II of cgst act 2017 to get a clarity regarding said transaction is suplly or not.
in order to express an opinion, there is a need of more speciffic facts.
hope this helps.
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