https://www.taxtmi.com/caselaws?id=447253 The AAR, Rajasthan ruled that GST on interest for delayed payment is payable on receipt basis, not accrual basis. Under Section 15(2)(d) of CGST Act, 2017, interest for delayed payment forms part of supply value. Per Section 12(6), time of supply for interest is when the supplier actually receives such payment. The supplier may issue debit notes under Section 34 for delayed payment interest, but GST liability arises only upon actual receipt of the interest amount, not when demanded or debited to purchaser's account. en-us Fri, 01 Sep 2023 00:00:00 +0530 Wed, 23 Apr 2025 14:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447253 The AAR, Rajasthan ruled that GST on interest for delayed payment is payable on receipt basis, not accrual basis. Under Section 15(2)(d) of CGST Act, 2017, interest for delayed payment forms part of supply value. Per Section 12(6), time of supply for interest is when the supplier actually receives such payment. The supplier may issue debit notes under Section 34 for delayed payment interest, but GST liability arises only upon actual receipt of the interest amount, not when demanded or debited to purchaser's account. Case-Laws GST Fri, 01 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447253