Due to lockdown in the whole nation that had resulted in shutdown of businesses and slowdown in demandtriggered a severe liquidity crisis in the economy. This may lead to difficulty to business in meeting their contractual obligations, which may result in non-performance of agreed obligations or delayed performances/deliveries. They levy of GST on contractual damages is debatable issue under GST. It is high time for government to come up with clarification to settle this issue to avoid unnecessary litigation and tax administration costs for assesses.
