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GST interest and Late fee allowed or Disallowed

1795 views 3 replies
Hi Sir or Madam

We are looking after Accounts of a proprietor firm

Every month we are filing GST returns after due date only

Hence For Financial year 2022-23 we have paid interest and late fee 97,000

Could some one please advise whether this can be allowed or disallowed under income tax act

Thanks in advance
Replies (3)
Interest and late fees on GST both allowed under income tax act as it is not in the nature of breach of law but paid for the purpose of compliance of law. Thus, both allowed.
Memorize it this way,
Any other Act- penalty under any law is not allowed, interest or late fee under any law is allowed(except Income Tax Act)

Income Tax Act- interest, penalty, late fee paid under Income Tax Act are not allowed
Indirect Taxes - Late Fee & Interest allowed as expenses in Income Tax but Penalty disallowed and added back to profit.


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