Corrigendum to Circular No.
102/21/2019-GST
dated 15 July 2019 – GST on Penal Interest Depends upon Facts of Each Case
Circular 102/21/2019-GST slightly amended to
rectify an inadvertent error
Subject: Corrigendum to Circular No. 102/21/2019-GST dated 28th June, 2018 issued vide F. No. CBEC/20/16/4/2018-GST
In para 5 of the Circular No. 102/21/2019-GST dated 28th June, 2018,
for
“Case 2: The additional / penal interest is charged for a transaction between Y and M/s ABC
Ltd., and the same is getting covered under Sl. No. 27 of notification
No.
12/2017-Central Tax (Rate) dated 28.06.2017. Accordingly, in
this case the 'penal interest'
charged
thereon on a
transaction between Y and M/s ABC Ltd. would not be subject to GST, as the same would not
be covered under notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The value of supply of mobile by X to Y would be Rs. 40,000/- for the purpose
of levy of GST.”
read,
“Case 2: The additional / penal interest is charged for a transaction between Y and M/s ABC
Ltd., and the same is getting covered under Sl. No. 27 of notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. Accordingly, in
this case the 'penal interest'
charged
thereon on a
transaction between Y and M/s ABC Ltd. would not be subject to GST, as the same would not
be covered under notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The value of supply of mobile by X to Y would be Rs. 40,000/- for the purpose
of levy of GST.”
2. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
3. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the
Board.
CBEC/20/16/4/2018-GST