Does liability to pay GST on reverse charge arises if the amount is paid as interest on late payment of invoices of imported goods?

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Last updated: 23 April 2021
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This ruling addresses whether Goods and Services Tax (GST) is payable under the reverse charge mechanism on interest charged for late payment of imported goods. The applicant also inquired about GST on stamp tax reimbursement and the applicability of a specific notification concerning CIF imports where freight is already included in the assessable value for IGST payment.

Court :
Gujrat AAR

Brief :
The applicant M/s.Enpay Transformers Components India pvt.ltd. PlotNo.112, Alindra, Manjusar GIDC, Savli, Vadodara (hereinafter referred to as Enpay, India) is engaged in the business of manufacturing and supplyingTransformer components. The applicant has stated that the company isimporting goods from the Holding company located at Turkey namely M/s. Enpay Endstriyel Pzarlama ve Yatirim A.S.

Citation :
ADVANCE RULING NO. GUJ/GAAR/R/01/2021

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1 Year PLAN
1999
(Excl. of GST ₹359)

2 Years PLAN
3499
(Excl. of GST ₹629)

BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)

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