No GST on fine or penalty for violation of provision  of law : CBIC Clarify

By | June 4, 2018
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(Last Updated On: June 4, 2018)

Would imposition of a fine or penalty for violation of a provision  of law be a consideration for the  activity of breaking the law, making such activity as service?

No. Fines and penalties are imposed for breaking the law by a person. They  are not in the nature of a consideration for an activity and hence, would not constitute a supply of service.

Q 49 of GST FAQs on Financial Services Sector published by CBIC

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