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.

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