GST Applies to Interest on Delayed Land Payments: 16% Interest Rate Considered Part of Taxable Supply Value.

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....Levy of GST - GST on interest - interest amount receivable on the balance land cost - In the instant case the applicant, APIIC had given a facility to the beneficiaries, by extending the service of fixation of annual instalments with an interest Pi 16°/o p.a for delayed payment of 75% of total consideration over a period of time. In such a case, the interest on the credit facility allowed by the applicant is part of the value of taxable supply and shall be liable to GST. - AAR....