Interest charged on delayed payments gst will apply or not
This query is : Resolved
04 December 2018
We are charging interest on delayed payment of dues and issuing debit note for the same. I want to know that GST will be charge or not on interest.????
Thanks,
Ganesh Sharma
Thanks,
Ganesh Sharma
04 December 2018
Since the transaction will come under the purview of "Supply" and there is no exemption for such transactions , GST is leviable on delayed payment charges.
04 December 2018
Yes, GST is leviable on interest for delayed payment and is considered in the value u/s 15(2)(d) of the CGST Act. However, the same shall be considered only when you actually receive the payment. This by the virtue of S.13(6) of IGST Act, which reads as-
The time of supply to the extent it relates to an addition in the value of supply by
way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.
The time of supply to the extent it relates to an addition in the value of supply by
way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
