Interest Paid for late payment of GST

This query is : Resolved 
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This discussion explores whether interest paid for late GST payments is considered an allowable expense for income tax purposes. While some experts suggest disallowing it, recent judgments indicate that even late fees and penalties, being integral to business operations, may be allowable for deduction during income tax assessment.

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(Querist)
10 July 2020 Sir
Whether interest paid for late payment of GST is allowable expenses or not under income tax act?
Some of the experts saying to disallow the same.
Regards
P.Saravanan.
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KAVIRAJA ADDANGADI

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KAVIRAJA ADDANGADI (Expert)
10 July 2020 interest paid is allowed but late fee or penalty paid is disallowed under income tax act.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
05 November 2021 As per recent judgement, even late fees & penalty, being part and parcel of business, is allowed for deduction under IT assessment.
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