Bajaj Finance Limited ., In re
- Court:
- Appellate Authority for Advance Ruling
- Bench:
- Maharashtra
- Date:
- December 12, 2019
- Type:
- Rectification Of Advance Ruling
- Members:
- Sungita Sharma, Rajiv Jalota
Subject
Penal interest recovered from customers against the delayed payment of monthly instalments of a loan is exempt from GST
Summary
The Appellant enters into agreements with borrowers/customers for providing loans to them. In case of delay in repayment of EMI by the customers, the Appellant collects penal/default interest. The Applicants had contended that the amount charged in t…
Judgement
1. The Appellant is a non-banking financial company and is inter olio engaged in providing various types of loans to the customers such as auto loans, loans against the property, personal loans, consumer durable goods loans, etc. 2. The Appellant, inter olio, enters into agreements with borrowers/customers for providing loans to them. The loan agreements provide for repayment of the outstanding du…