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Gst liability on interest for delayed payment between nonfincial companies
I am a wholesale textile trader and due to corona disruptions I am forced to pay interest to supplier textile mills on account of delayed payments. Similarly I am also collecting interests from my customers for delayed payments. Are such interest transactions liable to GST?
Replies (2)
Quick Summary
Yes, GST is leviable on such interests.
Check section 15(2)(d) of CGST Act on valuations. Such interest and penalty forms part of value and are taxable.
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