GST is applicable on interest receivable on delayed payments, Cheque Bouncing Charges and connection/ Reconnection/ Disconnection/ Permanent Disconnection Charges as activities ‘Incidental to main activities’.
Levy of GST— In the instant case, the claim of applicant is that the activities listed under ‘Incidental to main activities’ are to be considered as part of the main activities and the main activities of ‘Supply of treated water’, ‘Sewage treatment services’ and ‘Consultancy services’ are exempted.
Held that—
Interest on receivable on delayed payments, Cheque Bouncing Charges being charges received for ‘Agreeing to tolerate an act’ classifiable under SAC 999794 is taxable @18%.
Connection/ Reconnection/ Disconnection/ Permanent Disconnection Charges are charges received for the services of ‘Water Distribution Services’ classifiable under SAC 9969 and is taxable @18%
GST is applicable on interest receivable on delayed payments, Cheque Bouncing Charges and connection/ Reconnection/ Disconnection/ Permanent Disconnection Charges as activities ‘Incidental to main activities’.
Levy of GST— In the instant case, the claim of applicant is that the activities listed under ‘Incidental to main activities’ are to be considered as part of the main activities and the main activities of ‘Supply of treated water’, ‘Sewage treatment services’ and ‘Consultancy services’ are exempted.
Held that—
Interest on receivable on delayed payments, Cheque Bouncing Charges being charges received for ‘Agreeing to tolerate an act’ classifiable under SAC 999794 is taxable @18%.
Connection/ Reconnection/ Disconnection/ Permanent Disconnection Charges are charges received for the services of ‘Water Distribution Services’ classifiable under SAC 9969 and is taxable @18%