Question ID : 29619

Reverse charge

Whether Interest paid to unregistered person will be subject to Reverse charge wef 1-7-18 as it is exempted up to 30-6-18

Answer ID : 65601

In the question, it is not clear for what is interest paid for. Assuming it as interest on unsecured loan, Please refer entry 27 of Notification No. 122017 Central Tax (Rate) dated 28.06.2017 wherein it exempts Services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount. Hence, Interest on unsecured Loan doesnt attract GST and therefore, RCM also is not applicable

Answer ID : 65609

It is exempted service and no need to charge GST

Answer ID : 65610

It seems that interest is paid on delay payment of supplies. As per Section 12(6) of CGST Act, 2017 relating to Time of Supply of Goods states that time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value. the rate of GST shall be applicable the rate at which the goods or services.

Answer ID : 68699

Interest (unless for delayed supply of some other goods or services) will either be not supply or if supply be exempted under notification 12-2017 (CTR).

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