https://www.taxtmi.com/caselaws?id=783328 HC held that while the foreman's commission/remuneration up to 7% of the gross chit amount under Section 21(b) of the Chit Funds Act, 1982 is taxable under GST, interest and penalty recovered from defaulting chit subscribers under Section 21(c) constitute consideration for a loan/debt and fall within the exemption for interest under Entry 27 of Notification 12/2017. Such interest/penalty is distinct from service fees and does not form part of the taxable value of the foreman's services in running the chit. The rulings of the Authority for Advance Ruling and Appellate Authority for Advance Ruling were set aside, and the petition was allowed. en-us Wed, 10 Dec 2025 00:00:00 +0530 Sat, 13 Dec 2025 08:28:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783328 HC held that while the foreman's commission/remuneration up to 7% of the gross chit amount under Section 21(b) of the Chit Funds Act, 1982 is taxable under GST, interest and penalty recovered from defaulting chit subscribers under Section 21(c) constitute consideration for a loan/debt and fall within the exemption for interest under Entry 27 of Notification 12/2017. Such interest/penalty is distinct from service fees and does not form part of the taxable value of the foreman's services in running the chit. The rulings of the Authority for Advance Ruling and Appellate Authority for Advance Ruling were set aside, and the petition was allowed. Case-Laws GST Wed, 10 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783328