SAC Code for interest on delayed payment by customer

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Interest on delayed payment is part of transaction value under Section 15(2)(d) of CGST Act, so SAC code is not separately required; use underlying product HSN. Credit note adjustment issues in HSN summary may require proper period-wise reporting instead of negative quantity.

CA Parul Saxena

CA Parul Saxena (Querist)
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09 October 2019 Our co has raised a Debit note for interest on delayed payment by the customers. Please tell the SAC Code applicable on the same. Is it 997119?

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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09 October 2019 Please refer section 15 (2) (d) of CGST act. The interest or penalty for delayed payment relating to the supply of goods should also be considered in the transaction value. Hence in the debit note HSN code of the product for which supply made to be mentioned.

CA Parul Saxena

CA Parul Saxena (Querist)
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09 October 2019 Ok...my another query is if credit note is issued for a particular product in Sep19 but sale of that product was made in Aug 19 then how to show this in HSN Summary as negative quantity is not acceptable in this schedule.

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