Interest charged on delayed payments gst will apply or not

This query is : Resolved

ganesh sharma (Querist)
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04 December 2018 We are charging interest on delayed payment of dues and issuing debit note for the same. I want to know that GST will be charge or not on interest.????

Thanks,
Ganesh Sharma

CA Ankit R Momaya

CA Ankit R Momaya (Expert)
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04 December 2018 Since the transaction will come under the purview of "Supply" and there is no exemption for such transactions , GST is leviable on delayed payment charges.

Z (Expert)
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04 December 2018 Yes, GST is leviable on interest for delayed payment and is considered in the value u/s 15(2)(d) of the CGST Act. However, the same shall be considered only when you actually receive the payment. This by the virtue of S.13(6) of IGST Act, which reads as-
The time of supply to the extent it relates to an addition in the value of supply by
way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.

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