Question 9 - What is the time of supply applicable with regard to addition in the value by way of interest, late fee or penalty or any delayed payment of consideration?
Faq On GST (2nd Edition) Dated 31.3.2017 Chapter 5 Time of Supply
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Time of supply: receipt by the supplier fixes tax point for interest, late fees or penalty on delayed payment. The time of supply for additions to taxable value due to interest, late fee, penalty, or delayed consideration is the date on which the supplier receives that additional consideration, so receipt constitutes the tax point for those adjustment items.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Time of supply: receipt by the supplier fixes tax point for interest, late fees or penalty on delayed payment.
The time of supply for additions to taxable value due to interest, late fee, penalty, or delayed consideration is the date on which the supplier receives that additional consideration, so receipt constitutes the tax point for those adjustment items.
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