GST DAILY – 341 : GST shall be paid on date of receiving interest on delayed payment for goods sold by supplier: AAR

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GST shall be paid on date of receiving interest on delayed payment for goods sold by supplier: AAR

THE AUTHORITY FOR ADVANCE RULING UNDER RAJASTHAN GST, In the case of Pink City Steel Rolling Mills Pvt. Ltd., decided on 1-9-2023

👉 Issue:-

✔️ What would be time of supply for penal interest?  

👉 The AAR Judgement:-

✔️ Where assessee demanded interest on delayed payment for goods sold as per terms of invoice and debited interest in account of purchaser, in view of section 12(6) GST is to be paid on date on which supplier of goods receives such addition in value through interest of delayed payments.

Section 12 read with section 15 of Central Goods and Services Tax Act, 2017