Is there any specific provision for interest income under GST Act?

Under GST, supplier of goods, services can include any interest charged for delayed payment

Amit Bhagat 

Is there any specific provision for interest income under the Goods and Services Tax (GST) Act? I want to know if I charge an interest for payment delay, do I need to pay GST on it? Also, sometimes we debit buyers’ accounts directly as fee for delay. Will there be GST on such fees? Under the GST law, there is a specific provision, under which a supplier of goods/services can include any interest charged on account of a delay in payment of consideration by the customer, in the taxable value of supplies. Therefore, if you charge any interest, you should be required to deposit ...

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Read our full coverage on GST
First Published: Sun, September 03 2017. 23:10 IST