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GST payable on penalty

Mariappan (Student CA final new) (106 Points)

30 June 2021

Supplier collect amount form buyer with late payment interest, in this transaction for interest who is liable to pay GST? supplier should collect from buyer and remit to Govt or seller is liable to discharge?

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4 Replies

Guru Karthick (45 Points)
Replied 30 June 2021

Supplier should collect from the buyer and remit the same to the government.

3 Like

CMA Poornima Madhava (CMA) (13112 Points)
Replied 30 June 2021

Buyer would be liable to pay tax on interest. Supplier can raise the invoice for interest along with GST so that the same can be collected from the buyer.

2 Like

CA Altamush Zafar (GST Consultant) (15986 Points)
Replied 30 June 2021

The liability is always on supplier (except rcm cases). But you must collect it from buyer and discharge your liability

2 Like

Imthias ahamed Kormath (910 Points)
Replied 01 July 2021

An evidence may keep for the liability of buyer.But,buyer may liable to remit gst with interest and penalty ,what amount added on the same goods by him.Cgst Act section62,73,74

1 Like