Interest exemption under GST: penal interest by lenders can be exempt, but penal interest included in sale consideration is taxable. Clarifies that penal interest included in the consideration for a taxable supply of goods must be included in the value of supply under section 15 and is taxable, whereas penal interest charged by an independent lender qualifies as interest under notification No. 12/2017 and is exempt under Sl. No. 27; fees or charges not meeting the definition of interest remain taxable.
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Provisions expressly mentioned in the judgment/order text.
Interest exemption under GST: penal interest by lenders can be exempt, but penal interest included in sale consideration is taxable.
Clarifies that penal interest included in the consideration for a taxable supply of goods must be included in the value of supply under section 15 and is taxable, whereas penal interest charged by an independent lender qualifies as interest under notification No. 12/2017 and is exempt under Sl. No. 27; fees or charges not meeting the definition of interest remain taxable.
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