TaxTMI 
TaxTMI 
GST ON INTEREST ON DELAYED PAYMENT
X X X X Extracts X X X X
X X X X Extracts X X X X
....ST ON INTEREST ON DELAYED PAYMENT<br> Query (Issue) Started By: - ROHIT GOEL Dated:- 5-2-2018 Last Reply Date:- 5-2-2018 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>We have purchased Cigarettes for which payment has been made beyond due date of payment and therefore interest on delayed payment has been charged by company. Company has issued debit note where HSN code of cigarette is men....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tioned and description mentioned as Interest on delayed payment.... Whether it is correct treatment by company and how to treat it in our GST return?? Reply By KASTURI SETHI: The Reply: Yes. The Company is correct in this aspect. As per Section 15 of CGST Act, 2017 interest on delayed payment is part of taxable value/transaction value(on which GST is to be computed and paid). In GST return decl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....are the taxable value including interest on delayed payment. Just for your information normal interest which we earn on our bank account is not to be treated part of taxable value. Reply By Alkesh Jani: The Reply: Sir, I agree with the views of Sh. Kasturiji, the issued is very clear and Section 15(d) of CGST Act,2017 clearly states that interest or late fee or penalty for delayed payment of an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y consideration for any supply is required to be included for valuation purpose. Reply By Ganeshan Kalyani: The Reply: Section 15 (2)(d) of CGST Act provides that transactional value shall include interest or late fee or penalty for delayed payment of any consideration for any supply; and....<br> Discussion Forum - Knowledge Sharing ....