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GST on interest for late payment of Invoice value, Goods and Services Tax - GST |
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GST on interest for late payment of Invoice value |
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We are registered under GST and are supplying taxable goods as well as exempt goods to our customers. In case of non payment of Invoice value in time, we charge interest to the customers. What shall be the GST implication in case of (i) Taxable goods & (ii) Exempt Goods. Posts / Replies Showing Replies 1 to 4 of 4 Records Page: 1
Gst on interest will be the same rate as applicable to the goods in respect of which interest is collected since it is an addition to the value of supply u/s 15.
Dear Dinesh Ji, Let’s make it interesting. So, if 15(2)(c) requires such interest to be added in the valuation then in such case are you supposed to raise debit note and get the credit. Food for thought.
Dear Shilpi,
Yes. This is because the interest is added as per section 15 and thereby is part of value of supply. So not gst on interest collected in respect of exempt supply. Page: 1 Old Query - New Comments are closed. |
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