https://www.taxtmi.com/circulars?id=61708 Penal interest on delayed EMI payments is taxable when charged by the seller as part of the goods transaction and must be included in the value of supply; penal interest charged by a third party lender as interest on a loan falls under the notified exemption for loan interest and is not subject to GST. Charges that do not qualify as "interest" (service fees or other lender charges) are not exempt. Penal interest is not treated as a Schedule II liquidated damages service where it meets the notification's definition of interest. en-us Fri, 28 Jun 2019 00:00:00 +0530 Sat, 06 Jul 2019 17:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=61708 Penal interest on delayed EMI payments is taxable when charged by the seller as part of the goods transaction and must be included in the value of supply; penal interest charged by a third party lender as interest on a loan falls under the notified exemption for loan interest and is not subject to GST. Charges that do not qualify as "interest" (service fees or other lender charges) are not exempt. Penal interest is not treated as a Schedule II liquidated damages service where it meets the notification's definition of interest. Circulars GST - States Fri, 28 Jun 2019 00:00:00 +0530 https://www.taxtmi.com/circulars?id=61708