GST on Interes,new project etc

[Narendra Soni]

Kindly provide your valuable advise,how we can save GST, if applicable in the following cases :-

1.Interest charged from customer for overdue payment.

2.Amount charged from customer for early delivery of shipment.

3.We procured material & services for electricity supply line from feeder to new factory:-

We purchased Poles & Wires from market vendors and given to our contractors(service providers) for installation on road from feeder to factory.

Some incidental material required to fit the wires on poles like-clam/nut/bolts/aluminum wire/earthing wire/insulators/hdpe pipes are bring by our contractor (Service provider) for this commissioning.

In new factor-Transformer,DG set, street lighting,cable ,wire will also install.

Our intention is not to pay GST, please guide.

AI Summary

Seeking GST Evasion Advice: Forum Highlights Risks, Importance of Compliance, and Section 17(5) ITC Restrictions. A forum participant sought advice on avoiding GST for interest on overdue payments, charges for early shipment delivery, and materials used in setting up an electricity supply line for a new factory. Responses indicated that such actions would constitute tax evasion and emphasized the importance of paying applicable GST. It was clarified that these activities fall under Works Contract Service, attracting GST, and that input tax credit (ITC) is restricted for certain construction-related services. Participants advised referring to specific sections of the CGST Act for guidance on ITC eligibility, noting complexities in Section 17(5) regarding admissibility.