The Inland Revenue Authority of Singapore (IRAS) has published updated guidance on the GST treatment of Compensation, which is not subject to GST, as opposed to consideration, which is subject to GST.
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Compensation
If you receive a payment because another party has not met certain obligations or conditions, you need to determine whether GST is chargeable on that payment.
A payment that is compensatory in nature is not consideration for a supply. Therefore, GST is not chargeable on th…