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MSME INTEREST.

Abhishek (11) (58 Points)

05 May 2020

Interest received upon late receipt against an invoice. Is liable to tax under Gst @ 18%.
Is it correct?

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Asha Kanta Sharma (Manager - Finance & Accounts) (23167 Points)
Replied 05 May 2020

In cases where the supplier along with the supply goods and services has allowed a credit facility to the customer in such cases interest for extending loan as well as penal interest charged from the customer upon delay in payment of consideration for supply of goods and services shall be included in the value of supply of goods and services and shall be liable to GST.