Subject — Interest is a service or a Good

Subject — Interest is a service or a Good

For any service, if the provider is trying to charge the “Late Payment Fee”, and on top of that late payment fee they are trying to levy 18% GST. Then my question is under Policy clarification that this “Late Payment Fee” is a service or Goods(Example Apartment Maintenance Services provided by builder not AOA / RWA)?

I see this neither as a service nor a Goods.

 

Replies (4)
Quick Summary
Late payment interest or fee charged on delayed payment is treated as part of the original supply under GST. It is considered a service, not goods. The same GST rate and SAC/HSN code applicable to the main service will apply to the late payment charges as well.

This is Service...
This is not a goods...
Originally posted by : RAJA P M
This is Service...This is not a goods...

Thanks so what GST %age and what SAC code will be applied?

The same rate and HSN/SAC code are applicable against the supply of which interest on delayed payment is received
Service not goods

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Follow