GST on penal interest: included in taxable value when charged by seller, exempt if charged by separate lender as loan interest. Clarifies that penal interest levied by a seller on delayed EMI payments must be included in the value of the taxable supply and is subject to GST, whereas penal interest charged by a separate lender in the course of extending loans falls within the exemption for interest on loans and is not subject to GST; fees or charges that are not interest remain taxable.
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Provisions expressly mentioned in the judgment/order text.
GST on penal interest: included in taxable value when charged by seller, exempt if charged by separate lender as loan interest.
Clarifies that penal interest levied by a seller on delayed EMI payments must be included in the value of the taxable supply and is subject to GST, whereas penal interest charged by a separate lender in the course of extending loans falls within the exemption for interest on loans and is not subject to GST; fees or charges that are not interest remain taxable.
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