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Gst applicable

sulakshna (Senior Accountant) (45 Points)

11 May 2019

Is Gst Applicable if supply done in 2013-2014 and partial payment received in 2019 and Gst also applicable on late payment interest

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11 Replies

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 11 May 2019

Well...
Yes... GST applicable for the late payment interest charged in GST regime.

CA Shikha Sharma (Ceo) (3869 Points)
Replied 11 May 2019

Yes gst will be applicable

3 Like

CA Haritha Komma (Chartered Accountant) (1147 Points)
Replied 11 May 2019

I guess ST is applicable as levy is attracted on provision of services which is in ST regime as per transitional provisions.

pritesh (CA Final student) (7101 Points)
Replied 11 May 2019

Yes applicable

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 12 May 2019

No if the supply was made & the bill was raised in 2013-14 , No GST is applicable even though the partail payment being reced in GST regime for the same .

In term of Section 15 ,of CGST Acr yes the GST is applicable on Late payment Interest

CA Shikha Sharma (Ceo) (3869 Points)
Replied 12 May 2019

invoice must be raised at the time of supply ,
in case of services it's to be seen payment due/made
and goods to be removal or delivery

here on your case payment made sure but paid later is against the law it's not possible now

3 Like

sulakshna (Senior Accountant) (45 Points)
Replied 13 May 2019

Supply made in vat but some payment not release Client filed case TYA Arbitation in March 2018 if we have received payment is it possible GST is Applicable .

RAJA P M ("Do the Right Thing...!!!") (127463 Points)
Replied 13 May 2019

Originally posted by : sulakshna
	Supply made in vat but some payment not release Client filed case TYA Arbitation in March 2018 if we have received payment is it possible GST is Applicable .

Yes... GST applicable on the INTEREST amount only. Not for outstanding amount.

CA Haritha Komma (Chartered Accountant) (1147 Points)
Replied 14 May 2019

As per section 142(11)(a) of CGST Act, notwithstanding anything in sec 12 of the act, no GST is payable on goods to the extent of VAT leviable on said goods..

In the present case as the removal has happened in VAT regime and levy of VAT is already attracted on said removal. Hence no GST is payable though consideration is received in GST regime.

Further, w.r.t interest received on late payment of consideration, it is included in value of supply as per sec 15 of the CGST Act. Hence, interest is just a valuation mechanism but not a separate supply. Value of supply needs to be be determined at the time of supply which is in VAT regime wherein interest is not to be included.

Hence, GST is not payable even on interest received if the corresponding supply is in VAT regime.