https://www.taxtmi.com/circulars?id=62166 The circular clarifies that penal interest for delayed EMIs must be included in the value of supply under s.15(2)(d) of the TNGST Act and is taxable when charged by the seller as part of a sale transaction; interest charged by a third party lender falls within the loan interest exemption and is not subject to GST. Penal interest satisfying the notification definition of interest is not treated as a separate Schedule II service of agreeing to tolerate or refrain, while non interest fees charged by lenders remain taxable. en-us Fri, 05 Jul 2019 00:00:00 +0530 Mon, 12 Aug 2019 17:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=62166 The circular clarifies that penal interest for delayed EMIs must be included in the value of supply under s.15(2)(d) of the TNGST Act and is taxable when charged by the seller as part of a sale transaction; interest charged by a third party lender falls within the loan interest exemption and is not subject to GST. Penal interest satisfying the notification definition of interest is not treated as a separate Schedule II service of agreeing to tolerate or refrain, while non interest fees charged by lenders remain taxable. Circulars GST - States Fri, 05 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/circulars?id=62166