CBIC Clarifies Applicability of GST on Additional or Penal Interest
CBIC has issued a circular applicability of GST on additional or penal interest.
Where the amount of EMI has been fixed by the vendor and as per the terms of contract the buyer has agreed to pay a fixed amount of additional or penal interest in case of delayed payment, the amount of penal interest will be taxable and will be included in the value of the goods.
Where the buyer has an option to avail loan at a fixed interest rate and the terms of loan provides for the repayment of loan over a fixed period of time and a fixed rate of additional or penal interest in case of delayed payment. Then, the amount of penal interest will not be taxable under GST and will be exempt.
Increase in number of working days for distilleries – Amendment in Environmental Clearance
MoEF has issued clarification on amendment in environmental clearance relation to the increase in number of working days for distilleries.
As per the clarification, PCBs shall monitor emission standards for boilers before issuing Consent to Establish/Operate. The Projects and distilleries which involve installation of incineration boilers and which have covered bio-composting operations for the end treatment of spent wash to achieve zero liquid discharge, do not require amendment in the existing environmental clearances to increase number of working days, subject to compliance to Standard Operating Procedure formulated by CPCB.
CBIC issues Clarifications regarding the wrong mapping of Refund Applications
CBIC has issued clarifications regarding the wrong mapping of refund applications in Form GST RFD-01A on the common portal.
Tax authority to whom the application is wrongly transferred and the re-assignment of such application is not possible on common portal then, the authority to which the application was transferred electronically will process such refund application. Further, such tax authority after processing the application may inform the common portal about the wrong mapping of the refund applications and request to update it accordingly.
