kindly suggest me, I have raised Service bill rs. 100 + 18% gst total Rs. 118 but service receiver deducted Rs. 10 as a Penalty now net invoice is rs. 90 (100-10) but they charged gst on Rs. 100 is it correct if yes please give your knowledge.
Section 15(2) of CSGT Act,2017 lists out the compulsory inclusions in the value of supply where Section 15(2)(d) mentions – ‘interest or late fee or penalty for delayed payment of any consideration for any supply’.
GST provisions have clearly outlined that such charging of Interest will be a part of value of supply..
14 May 2019
Thank You Madam, "the sentence said Penalty for Delayed payment of any consideration'' but in my case penalty "just because of agreement clause" i.e. as per agreement 30 days work, but if absent 15 days or more then penalty should be levied by first party. thank you,
CAclubindia
