M/s. Karam Chand Thapar & Bros (Coal Sales) Limited. dated 15.07.2026

The applicant had entered into a works contract prior to the introduction of the Goods and Services Tax regime on 1 July 2017. The contractual work was fully completed during the pre-GST era. However, disputes subsequently arose between the contracting parties regarding payment of the contract consideration, which were referred to arbitration.

The arbitral proceedings culminated in an award in 2023, pursuant to which the applicant received various amounts from the contractee. While filing its Form GSTR-3B, the applicant consciously treated the amounts received under the arbitral award as non-taxable, taking the view that they represented compensation arising out of an arbitral award and not consideration for any taxable supply under the GST law.