https://www.taxtmi.com/forum/issue?id=115142 Whether a retained portion of interest on premature repayment of fixed term deposits is taxable under GST depends on its characterisation: if treated as penal interest or consideration for tolerating altered performance it may attract GST as a supply of service; if treated as a discount/incentive reducing the lender's benefit it may not be taxable. Professional opinion in the discussion diverges, with some relying on penal interest authorities to support taxability and others treating the reduction as a non penal contractual discount. en-us Tue, 02 Jul 2019 21:02:31 +0530 Thu, 23 Jan 2025 15:55:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=115142 Whether a retained portion of interest on premature repayment of fixed term deposits is taxable under GST depends on its characterisation: if treated as penal interest or consideration for tolerating altered performance it may attract GST as a supply of service; if treated as a discount/incentive reducing the lender's benefit it may not be taxable. Professional opinion in the discussion diverges, with some relying on penal interest authorities to support taxability and others treating the reduction as a non penal contractual discount. Discussion-Forum GST Tue, 02 Jul 2019 21:02:31 +0530 https://www.taxtmi.com/forum/issue?id=115142