18% GST on Liquidated Damages: Appellate Authority upholds AAR Order

The Appellate Authority for Advance Ruling (AAAR), Maharashtra has upheld the order of AAR wherein it was held that the liquidated damages are classifiable as ‘other services’ and is taxable at the rate of 18% GST. The applicant, Maharashtra State Power Generation Company Limited (Mahagenco), engages in the generation of power with an objective to make Power available to all at an affordable rate.…