GST Payable on Penal Interest for delay in EMI payment: AAAR

In re Bajaj Finance Limited (GST AAAR Maharashtra) The Appellate Authority for Advance Ruling upheld  the ruling given by the Advance Ruling Authority by observing  that the penal charges / penalty recovered by the Appellant from their borrowers on account of the delay in payment of EMI by borrowers are adequately covered under clause 5 (e) of the Schedule II of the CGST Act, and will attract GST. Read AAAR Order on Rectification Application- No GST on additional/Penal interest for delayed Loan EMI payment FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, MAHARASHTRA At the outse...