INTEREST ON LATE PAYMENT RECEIVED OF SALE

[NAREN KHATRI]

HI.. SIR/S..

NEED TO ISSUE DEBIT NOTE TOWARDS INTEREST ON LATE PAYMENT RECEIVED TOWARDS SALES.

IS THIS INTEREST LIABLE TO GST..??

THANKING YOU IN ADVANCE..

AI Summary

GST Applies to Interest on Late Payments per Section 15(2)(d) of CGST Act 2017; Issue Debit Notes Accordingly. A query was raised about the applicability of GST on interest received from late payments on sales. Respondents clarified that under Section 15(2)(d) of the CGST Act, 2017, such interest is subject to GST. The applicable GST rate is the same as that of the goods or services originally supplied. The discussion included confirmation of GST applicability and guidance on issuing a debit note incorporating the interest and GST.