GST ON PENAL INTEREST

Is the penal interest charged by supplier for delayed payment assumed to be inclusive of gst for determining the value of supply or whole amountakingt is added it as exclusive of gst?
Replies (2)
Quick Summary
This discussion clarifies whether Goods and Services Tax (GST) is applicable to penal interest charged by suppliers for delayed payments. The consensus is that penal interest is treated as exclusive of GST. This is because tax invoices must prominently display the tax amount separately, as per Section 33 and Rule 46 of the CGST Act, meaning tax cannot be included implicitly within other charges.

It will be Ex GST only. 

As per section 33 of CGST Act , The AMOUNT OF Tax must be prominently mentioned on tax invoice.

So in GST the tax invoice cannot be reused inclusive of GST (Can also refer rule 46)

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