GST on Interest received / Paid if payment made/received after due date

This discussion explores whether GST applies to interest charged or paid on transactions when payments are made or received after the due date, particularly concerning debit and credit notes. The consensus suggests that GST is indeed applicable at an 18% rate in both scenarios. If you charge interest on delayed payments, you must add GST. Conversely, if you pay interest, you can claim it as Input Tax Credit (ITC).