Interest on delayed payment

Suppose Mr. A has sold goods worth Rs 1 Lakh to Mr. B, say on 15/05/17. Now , the term period allowed for the payment was 15days, ie the due date was 01/06/17. The Actual payment was made on 15/08/17. Is GST applicable to Interest component considereing the transition period.

Replies (11)

No in your case no GST will have to be paid on Interest amount as supply was prior to GST.

Yes, GST is applicable.

As per GST Act,GST is payable on interest amount where such interest is payable on delayed payment of consideration for supply made under this Act.So as per my view  GST is not payable. 

Yes... I agreed to Mr CA Somil Bhansali.,
GST not applicable for the interest of delayed payments of Before GST...

But , section 15(2) of CGST Act, 2017 mentions that Interest or late fee for delayed payment of any consideration for any supply should be included in the value of supply.

okay not to be included as supply was before implementaion of GST.

But,
It's not applicable to previous law...

 Yes, I agree with you sir.

fine but previous law is no more in existence, & if today u will supply anything the current law has to be follow , so iagrre with Mr Rahul

suppose purchase in vat period but same is return in GST regime , we have to charge GST or to reverse the Input . why.....
we cannot say that it was purchase in previous law , so we will not reverse the GST

Thank you all for the replies.

I am clear on non applicablity of tax on the interest portion till 30/06/2017. I am un clear on the applicabblity of GST on Interest on delayed payment. Will the same be covered under the definition of supply?

 

 

Yes, it is covered in the definition of Value of Supply.

Yes it will be covered in Value of Supply but only when consideration relates to supply (i.e sale of goods or Supply of Services) made in GST regime

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