08 January 2019
Need advice for below mentioned query
Company is dealing in exempted goods i.e. Agriculture product. It sales goods with condition of 20 days credit period, after that interest will be charged @ 12% pa. Some of customer make payment in 30 days and paid interest for 10 days delayed.
Whether this interest received by company for delayed payment of exempted goods is chargeable to GST?
12 January 2019
No GST is payable on such interest received as the goods supplied were exempted. If the goods are not exempted, such interest shall become part of value of goods and GST at the rate of goods supply, shall be paid on such interest received.
CAclubindia
