GST Rate and HSN Code on Payment Delay Charges.

Yes. I agrred to RAJA P M.,

The delayed payment related interests are business related agreement. So, It's not reflected in GST.

Sir,

As per Section 15 (2) (d) of CGST Act, 2017 " the value of supply shall include interest or late fee or penalty for delayed payment of any consideration for any supply." Therefore any interest collected on late payment received towards sales is liable to GST

Dear Sir,

Please tell the tax rate of GST along with HSN Code for GST charged on account of Late payment by customer.

PLS TELL ME HSN CODE OR SAC CODE ,IF ANY,FOR DELAY PAYMENT CHARGES CHARGES TO MY CUSTOMER ON LATE PAYMENT.

Dear Sir / Madam,

please reply on below question :

1. Sir, As per Section 15 (2) (d) of CGST Act, 2017 " the value of supply shall include interest or late fee or penalty for delayed payment of any consideration for any supply." Therefore any interest collected on late payment received towards sales is liable to GST

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=422693#reply

The HSN Code will be the same as the item HSN code Just mention in the descripttion as interest on late payment /overdue charges. And the GST Rate will be the same as the item rate because interest is earned from the consideration of that item.

As per Section 15 (2) (d) of CGST Act, 2017 " the value of supply shall include interest or late fee or penalty for delayed payment of any consideration for any supply." Therefore any interest collected on late payment received towards sales is liable to GST. 

So keeping in view the above section, the HSN Code and GST  for the delayed payment would be sameas the item HSN code. You will be required to show it separately in the bill as delayed payment.

The head of this item will be Delayed payment charges but HSN code and rate will be same as that of the main item of the bill