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Regarding Kacha Arhatiya

19 April 2020

interest receive by kacha arhatiya on delayed payment And sometime he receive interest on advancing loan then is GST payable on which interest delayed payment or loan advancing

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2 Replies

Shivam RC (Student) (23683 Points)
Replied 19 April 2020

Rakesh Sir can you explain briefly what is Kacha Arhatiya ???

Rajkumar Patel (602 Points)
Replied 20 April 2020

If you charge interest on delayed payment from Debtor than you will have to chage GST in accordance with section 15 of CGST 2017 on such interest but if you earn interest on by given loan than it shall be exempted from GST. Interest is exempt when it is chaged on amount given to use for any use for which you chaged Interest as consideration.