28 February 2022
I have to show Interest received from customers and GST and interest thereon required to be paid..So these details are to be added in GSTR9 or after making payment through DRC-03 these details supposed to be shown in GSTR9C? Further what is the rate of interest 18% or 24%?
07 July 2024
When dealing with interest received from customers and the GST liability on such interest, here’s how you should approach it in GSTR-9 and GSTR-9C:
1. **Interest Received from Customers**: - Interest received from customers is considered as part of your turnover for GST purposes. It should be included in your GSTR-9 under the appropriate sections where you declare your total turnover, including all taxable supplies.
2. **GST Liability on Interest Received**: - GST is applicable on interest received from customers if it is considered as a part of the taxable supply as per GST law. The GST rate applicable would be the same as applicable on the principal supply. For most services, it would typically be 18%. However, it's essential to verify the specific rate applicable to your business and the nature of the transaction.
3. **Interest on Delayed Payment of GST**: - If you are paying GST on interest received (considered as part of taxable turnover), and if there was any delay in paying this GST, interest on delayed payment (commonly known as interest on GST) would be applicable. - The rate of interest on delayed payment of GST is currently 18% per annum. This should be paid through DRC-03 (Payment Intimation) on the GST portal.
4. **Reporting in GSTR-9 and GSTR-9C**: - In GSTR-9: Include the total interest received as part of your taxable turnover. Report the GST liability on this turnover accordingly. - In GSTR-9C: This reconciliation form is used to reconcile the figures reported in GSTR-9 with audited financial statements. It should reflect the interest received, GST liability thereon, and any interest paid on delayed GST payments.
5. **Rate of Interest on Delayed Payment**: - As mentioned earlier, the rate of interest on delayed payment of GST is 18% per annum (1.5% per month). This is applicable from the due date of payment till the actual date of payment.
6. **Proper Documentation and Compliance**: - Ensure that all interest received, GST liability, and payments are accurately documented and reported in your GSTR-9 and GSTR-9C. - Any discrepancies or adjustments should be clearly explained in the reconciliation statement (GSTR-9C).
For precise compliance and to handle any specific nuances related to your business, consulting with a GST practitioner or tax advisor would be beneficial. They can provide tailored guidance based on your exact circumstances and ensure compliance with GST regulations.
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