Explain with reference to the provisions of the CGST Act, 2017 whether the following transaction of services provided by different persons shall be subject to levy of GST: (ii) Jaipur Municipal Corporation has awarded a

Services falling under HSN 9991 or 9997 provided by Central Government, State Government, Union territory or local authority by way of tolerating non-performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Central Government, State Government, Union territory or local authority under such contract are exempt vide Entry 62 of Notification No. 12/2017-CT(Rate). Hence, no GST shall be payable on liquidated damages of ₹10,00,000 paid by PQR Construction Ltd. to Jaipur Municipal Corporation for non-performance of contract.