Prepayment premium for prepayment of loans is taxable under CGST Act, 2017

In re Punjab State Power Corporation Limited (GST AAR Punjab)

1. Introduction: The recent case of Punjab State Power Corporation Limited (PSPCL) seeking an Advance Ruling from the GST AAR Punjab on the taxability of the prepayment premium charged by Power Finance Corporation Limited (PFC), New Delhi, sheds light on a complex issue in the realm of Goods and Services Tax (GST) under the CGST Act, 2017.

2. Brief Facts of the Case: PSPCL, a Punjab Government

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