9911796707
| Discussions Forum | ||||||||||||
Home  Forum Goods and Services Tax - GST This
A Public Forum.
Submit new Issue / Query
My Issues
My Replies
|
||||||||||||
Reversal of Common Input Tax Credit, Goods and Services Tax - GST |
||||||||||||
|
||||||||||||
Reversal of Common Input Tax Credit |
||||||||||||
Reversal of Common Input Tax Credit under GST is required for Exempted Supplies/Services. The Company has earned Interest on Loans & Advances/Deposit. Whether Interest income is considered as exempted for Calculation of Proportionate Exempted Sales to Taxable Sales. Posts / Replies Showing Replies 1 to 6 of 6 Records Page: 1
In my view it is not. It is applicable to the exempted supply of goods/services or both.
Answer is yes. It is normal/routine interest. The amount of interest earned on account of default payment/delayed payment is taxable under GST. See the definition of taxable value under Section 15 of CGST ACT, 2017
The interest is not on default but on loans and advances.
Dr.Govindarajan Sir,. I agree with you in toto.
Loan is not a service. Interest is also not a supply at all.
Interest does not fall under the category/definition of supply. Page: 1 Old Query - New Comments are closed. |
||||||||||||
.jpg)
