https://www.taxtmi.com/circulars?id=61688 Where penal interest is levied by the seller as part of an instalment sale, it must be included in the value of the taxable supply and is subject to GST. Where penal interest is charged by a separate lender as part of a loan, such interest qualifies as exempt interest under the loan-interest exemption and is not subject to GST. Penal interest that meets the notification's definition of "interest" is not to be treated as liquidated damages; non-interest service charges by a lender remain taxable. en-us Mon, 01 Jul 2019 00:00:00 +0530 Thu, 04 Jul 2019 11:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=61688 Where penal interest is levied by the seller as part of an instalment sale, it must be included in the value of the taxable supply and is subject to GST. Where penal interest is charged by a separate lender as part of a loan, such interest qualifies as exempt interest under the loan-interest exemption and is not subject to GST. Penal interest that meets the notification's definition of "interest" is not to be treated as liquidated damages; non-interest service charges by a lender remain taxable. Circulars GST - States Mon, 01 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/circulars?id=61688