AAAR: 'Penal charges' for delay in EMI re-payment not “interest”, liable to GST, upholds AAR

Maharashtra AAAR upholds AAR order that 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 CGST Act, 2017, liable to GST; States that the group of words “agreeing to the obligation” from first expression of clause 5(e) mandating for agreement and obligation are not applicable to the expression “to tolerate an act or a situation”; It...