Rs 1500 Crore GST on Penal Charges - A Compliance Failure Auditors Must Examine in FY 2025-26

MOHAN.C , Last updated: 28 March 2026 Share Follow on Google News

Quick Summary GST was wrongly levied on penal charges by banks/NBFCs during AprDec 2024 GST Council clarified: No GST applicable Approx. Rs 1,500 crore collected remains unrefunded Raises issues of liability recognition, unjust enrichment, and disclosures Critical audit area for FY ending

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MOHAN.C

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Chandramouli Mohan is an Ex-Banker with 38 years of service in various capacities in a Public Sector Bank. After retirement in March 2020, he has been writing article on consumer rights, Right to Information and public importance.

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Rs 1500 Crore GST on Penal Charges - A Compliance Failure Auditors Must Examine in FY 2025-26

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