https://www.taxtmi.com/circulars?id=62091 Where a seller embeds credit in the sale of taxable goods and charges penal interest for delayed instalments, that penal interest is includible in the value of the taxable supply and taxable. Conversely, penal interest charged by an independent financer on a loan qualifies as interest under the relevant notification and is exempt from GST; the taxable value of the goods in that case excludes the financier's penal interest. Penal interest does not fall under Schedule II entry 5(e), while non interest service fees charged by a financer are taxable. en-us Mon, 15 Jul 2019 00:00:00 +0530 Tue, 04 Mar 2025 13:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=62091 Where a seller embeds credit in the sale of taxable goods and charges penal interest for delayed instalments, that penal interest is includible in the value of the taxable supply and taxable. Conversely, penal interest charged by an independent financer on a loan qualifies as interest under the relevant notification and is exempt from GST; the taxable value of the goods in that case excludes the financier's penal interest. Penal interest does not fall under Schedule II entry 5(e), while non interest service fees charged by a financer are taxable. Circulars GST Mon, 15 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/circulars?id=62091