Is GST payable on court decretal arrears rent

This discussion explores whether landlords are liable to pay GST on rent arrears and penalties awarded by a court, particularly when the tenant deposits the amount with the court. It also touches upon how to correctly record Input Tax Credit (ITC) entries for such payments. One opinion suggests seeking an Advance Ruling under the CGST Act 2017, as Schedule II, clause 5(e) of the Act may classify this as a supply attracting GST, subject to the Rs 20 Lakh threshold.