GST on Interest under Annuity Model: AAR Holds Deferred Payment Interest Taxable as Part of Supply Value u/s 15(2)(d)

The AAR has ruled that "deferred payment interest" under an "annuity model" is "taxable as part of the supply value." This ruling is a significant step towards a more transparent and less intrusive tax environment, is aimed at simplifying the tax structure and reducing the tax burden on essential goods. The move is expected to have a significant impact on various sectors. The ruling clarifies that a tax authority can't add a company's account without a valid reason.