Summary:
more-inThe Maharashtra Advance Ruling Authority recently said that Goods and Services Tax (GST) will be applicable on liquidated damages(LD) as an independent levy. Mahagenco is a State Power Utility engaged in generation of power with objective to make power available to all at affordable rates. A Bench of B.V.
Borhade and Pankaj Kumar, Joint Commissioners of State Tax, was hearing a plea filed by Maharashtra State Power Generation Company Limited (Mahagenco). The pleaThey sought to know whether GST is applicable on LD in case of operation and maintenance activities or on construction of new power plants or renovation of old plants or both. In various contracts entered by the company, there is a clause to deduct LD in case of default by the contractor/vendor to complete the work on time..