LatestCorporate Compliance 2 July 2026
GST Exemption on Compensation
The Gujarat AAR has ruled that compensation for loss or damage to goods recovered from transporters is exempt from GST, providing relief to businesses. The government has also extended the GSTAT appeal filing deadline to July 31, 2026, amid a surge in portal filings.
The Gujarat Authority for Advance Rulings (AAR) has made a significant ruling regarding GST exemption on compensation for loss or damage to goods recovered from transporters.
- The AAR has stated that such compensation is not subject to GST, as it is not considered a supply of goods or services.
- This ruling is expected to provide relief to businesses that have been claiming compensation for lost or damaged goods during transportation.
The government has also extended the deadline for filing appeals with the Goods and Services Tax Appellate Tribunal (GSTAT) to July 31, 2026.
Need help understanding this update?
Connect with our domain experts instantly via WhatsApp for customized legal guidance.