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HSN CODE

05 February 2018

Interest is collected from client for delayed payment and GST is charged on interest collected.
What will be HSN Code for the same?

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4 Replies

siva (Student CA Final ) (181 Points)
Replied 05 February 2018

for which goods sold

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Neha Kankani (17 Points)
Replied 05 February 2018

flat sale (property)

siva (Student CA Final ) (181 Points)
Replied 05 February 2018

SAC Code 997221 – Property management services on a fee/commission basis or contract basis
SAC Code 997222 – Building sales on a fee/commission basis or contract basis
SAC Code 997223 – Land sales on a fee/commission basis or contract basis
SAC Code 997224 – Real estate appraisal services on a fee/commission basis or contract basis

The GST rate applicable for all services rendered under the heading real estate services on a fee/commission basis or contract basis is 18%

Real estate services involving owned or leased property are classified under the SAC code as follows:

SAC Code 997211 – Rental or leasing services involving own or leased residential property
SAC Code 997212 – Rental or leasing services involving own or leased non-residential property
SAC Code 997213 – Trade services of buildings
SAC Code 997214 – Trade services of time-share properties
SAC Code 997215 – Trade services of vacant and subdivided land

Services by way of renting of residential dwelling for use as residence is exempt from GST. Other rental services would attract GST at 18%.

Vamshi Krishna Javvaji (CA) (410 Points)
Replied 05 February 2018

Dear Neha, Collecting interest is not an independant supply. Liability on the interest collected arises based on the Valuation provisions(ref Sec 15 of CGST act). Hence, the tax rate and HSN applicable the main supply only should be applied for the interest collected. Note: If you are selling an old immovable property or new flat after getting an occupancy certificate no GST shall be applicable.