Whether cheque bouncing / dishonoring charges collected from defaulting customers is leviable to GST ?
TRT-2026-786

Issue Favourable to Tax Payer ?:- no

Held - The bounce charges collected by the Appellant is clearly not on account interest for the delayed payment of the consideration for their supply, but for dishonor of the repayment instruments, such as bouncing of the Cheques issued by the borrowers or the failure of the ECS for non-availability of the sufficient fund in the borrower’s account. Further, the Appellant is recovering separate amount at the fixed rate of interest under the h.....