TaxTMI 
TaxTMI 
TaxTMI 
Interest Received in GST Period for supply made in Pre GST Period
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....nterest Received in GST Period for supply made in Pre GST Period <br> Query (Issue) Started By: - Abhijeet Mumbai Dated:- 6-3-2026 Goods and Services Tax - GST <br> Got 2 Replies <br> GST<br> <br> Com....
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....pany received interest from customer on delay payment of consideration for sale of goods made under Bihar VAT for goods taxable @5%. Now GST officer is demanding GST @18% on this interest. Whether GST....
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.... is levy on such interest received on account of supply made pre-GST period. --Reply By: Shilpi Jain The Reply: This is in respect of a sale made earlier. It would be relevant to examine the transi....
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....tion provisions under GST. One could consider that there is no liability of GST on this interest as it is neither an upward price revision nor was any tax leviable on such amount under the erstwhile l....
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....aw. --Reply By: Pinnacle Tax Advisor The Reply: As per section 15(2)d of CSGT Act, interest on late payment from customer is the part of taxable value of supply. Hence liable for Tax under GST. Sec....
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....tion 12(6), the time of supply to the extent it relates to an addition in the value of supply by way of interest, for delayed payment of any consideration shall be the date on which the supplier recei....
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....ves such addition in value. therefore, if you receive the interest now, time of supply will be the date of receipt of payment and it will attract GST <br>***<br> Discussion F....
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