https://www.taxtmi.com/circulars?id=61782 The circular clarifies that penal interest charged by the seller as part of an installment sale must be included in the value of the supply of goods and is taxable, whereas penal interest charged by a separate financier qualifies as exempt "interest" and is not subject to GST; fees or charges that do not meet the definition of interest remain taxable. Penal interest is not treated as a separate taxable service under the Schedule II entry for agreeing to tolerate or refrain from an act. en-us Fri, 28 Jun 2019 00:00:00 +0530 Mon, 15 Jul 2019 17:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=61782 The circular clarifies that penal interest charged by the seller as part of an installment sale must be included in the value of the supply of goods and is taxable, whereas penal interest charged by a separate financier qualifies as exempt "interest" and is not subject to GST; fees or charges that do not meet the definition of interest remain taxable. Penal interest is not treated as a separate taxable service under the Schedule II entry for agreeing to tolerate or refrain from an act. Circulars GST - States Fri, 28 Jun 2019 00:00:00 +0530 https://www.taxtmi.com/circulars?id=61782