GST Rate and HSN Code on Payment Delay Charges.
suresh (senior accountant) (23 Points)
05 September 2017Kindly help me .
Thanks.
RAJA P M
("Do the Right Thing...!!!")
(128047 Points)
Replied 05 September 2017
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 05 September 2017
Yes. I agrred to RAJA P M.,
The delayed payment related interests are business related agreement. So, It's not reflected in GST.
suresh
(senior accountant)
(23 Points)
Replied 06 September 2017
Sohail Khan
(23 Points)
Replied 15 January 2018
Sir,
As per Section 15 (2) (d) of CGST Act, 2017 " the value of supply shall include interest or late fee or penalty for delayed payment of any consideration for any supply." Therefore any interest collected on late payment received towards sales is liable to GST
Deepankar Khurana
(2 Points)
Replied 15 January 2018
Dear Sir,
Please tell the tax rate of GST along with HSN Code for GST charged on account of Late payment by customer.
Ravindra Thale
(Accountant)
(22 Points)
Replied 14 March 2018
PLS TELL ME HSN CODE OR SAC CODE ,IF ANY,FOR DELAY PAYMENT CHARGES CHARGES TO MY CUSTOMER ON LATE PAYMENT.
TEJAS ASHOK DHOBALE
(ACCOUNTANT)
(22 Points)
Replied 27 April 2018
Dear Sir / Madam,
please reply on below question :
1. Sir, As per Section 15 (2) (d) of CGST Act, 2017 " the value of supply shall include interest or late fee or penalty for delayed payment of any consideration for any supply." Therefore any interest collected on late payment received towards sales is liable to GST
Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=422693#reply
Sohail Khan
(23 Points)
Replied 10 July 2018
The HSN Code will be the same as the item HSN code Just mention in the descripttion as interest on late payment /overdue charges. And the GST Rate will be the same as the item rate because interest is earned from the consideration of that item.
Ritik Chopra
(student)
(8128 Points)
Replied 16 April 2021
As per Section 15 (2) (d) of CGST Act, 2017 " the value of supply shall include interest or late fee or penalty for delayed payment of any consideration for any supply." Therefore any interest collected on late payment received towards sales is liable to GST.
So keeping in view the above section, the HSN Code and GST for the delayed payment would be sameas the item HSN code. You will be required to show it separately in the bill as delayed payment.
Bhavika Kothari
(CA)
(1258 Points)
Replied 24 April 2021
The head of this item will be Delayed payment charges but HSN code and rate will be same as that of the main item of the bill
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