No GST on additional/Penal interest for delayed Loan EMI payment

In re Bajaj Finance Limited (GST AAAR Maharashtra) The Appellate Authority for Advance Ruling, hereby, hold that the additional/Penal interest recovered by the Applicant from their customers against the delayed payment of monthly instalments of the loan extended to such customers, would be exempt from GST in terms of Sl. 27 of the Notification No. 12/2017-C.T. (Rate) dated 28.06.2017. FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, MAHARASHTRA A. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain ...