Penal interest exemption under notification clarified: GST remains non-applicable where penal interest is covered by the notification. Corrigendum to para 5 (Case 2) of Circular No. 74/2019-TNGST clarifies that the additional/penal interest charged between Y and M/s ABC Ltd. is covered under Sl. No. 27 of Notification No. 12/2017-Central Tax (Rate) and the corresponding Tamil Nadu notification, and therefore the penal interest would not be subject to GST; the value of supply of the mobile by X to Y remains Rs. 40,000 for GST levy purposes.
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Penal interest exemption under notification clarified: GST remains non-applicable where penal interest is covered by the notification.
Corrigendum to para 5 (Case 2) of Circular No. 74/2019-TNGST clarifies that the additional/penal interest charged between Y and M/s ABC Ltd. is covered under Sl. No. 27 of Notification No. 12/2017-Central Tax (Rate) and the corresponding Tamil Nadu notification, and therefore the penal interest would not be subject to GST; the value of supply of the mobile by X to Y remains Rs. 40,000 for GST levy purposes.
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