Section 15

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Mezda Banners, an advertising firm, gives an interest-free credit period of 30 days for
payment by the customer. Its customer ABC paid for the supply 32 days after the
supply of service. Mezda Banners waived the interest payable for delay of two days.
The Department wants to add interest for two days as per contract. Should notional
interest be added to the taxable value?
Replies (5)

Notional interest should not be added to taxable value because no actual consideration has been received and hence it cannot be treated as supply as per section 7 read with schedule I

any consideration towards taxable supply include in taxable value , Hance interest liable to GST.
but as per section 12 any addition in value,tax liability arises when the payment is actually received
Yes , it is not part of valuation , and also consideration not received , department cannot insists for that
When supplier has not charged & not reced anything how could department ask to add the same .


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