AAR: Interest/penalty charged by Chit Fund for delayed payments by members constitutes 'supply', taxable at 12%

Andhra Pradesh AAR holds interest/ penalty/late fee collected for delay in payment of monthly subscription by the members of Chit Fund company dealing with finance and related services and engaged in conducting chit auctions as supply of under GST; On perusal of Section 15(2)(d) of GST Act 2017, perceives that the interest, late fee or penalty charged from customer shall be added to transaction value and hence shall be taxable at the rate at which such goods/services are taxa...