TaxTMI 
TaxTMI 
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..
INTEREST ON LATE PAYMENT RECEIVED OF SALE
03 Sep 2017 
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Taxability of interest on late payment: interest forms part of taxable value and attracts GST at underlying supply rate.
Interest charged for late payment of consideration is included in the taxable value of supply and therefore subject to GST; the rate applied to such interest is the same as the rate applicable to the underlying supply. Suppliers should issue a debit note showing the interest and apply GST at the original supply's rate, aggregating interest into the invoice value for tax calculation and reporting. (AI Summary)
Interest charged for late payment of consideration is included in the taxable value of supply and therefore subject to GST; the rate applied to such interest is the same as the rate applicable to the underlying supply. Suppliers should issue a debit note showing the interest and apply GST at the original supply's rate, aggregating interest into the invoice value for tax calculation and reporting. (AI Summary)