GST levied on services not taken

Section 7(1A) read with schedule II of the Central Goods & Service Tax Act, 2017 (CGST Act), prescribes that “agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act” shall be treated to be a supply of service under the act. The same provision was also in place in the erstwhile tax regime under section 66E(e) of the Finance Act, 1994. The above-…