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.
Yes, GST is applicable.
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.
Yes, I agree with you sir.
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.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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