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Applicability of GST in fortitude

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(Querist)
21 April 2024 Dear members,
I have 2 queries please provide your valuable advice.


We are in the business of renting commercial spaces. Our contact requires the licensee to submit performance security in the form of Bank guarantee equal to a 6 month license fee. As per contact, If the licensee defaults in payment of the licensee fee for a continuous period of 2 months, we have a right to terminate the contract and invoke the Bank guarantee.
1. My question is whether GST is applicable or not on the amount of miscellaneous income (Rs 800000)? Miscellaneous income= Bank guarantee (Rs.1200000) - 2 months dues (Rs 400000).
2. Is GST applicable or not on the interest charged by us on delayed payments made by the licensee?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
23 April 2024 Penalty and Penal interest charged on delayed payment for supply of goods and services will be included in the value of supply and will stand liable for GST.
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