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
Posted by
Mahesh Kumar
on
May 05, 2018
Filed Under
GST
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
Posted by
Vinay Gandhi Billapati on
May 05, 2018
Answer ID :
65609
It is exempted service and no need to charge GST
Posted by
VINAY BHARGAV KUMAR G on
May 07, 2018
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.
Posted by
CA. SATISH CHAND GARG on
May 07, 2018
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).
Posted by
Jatin Harjai on
May 28, 2018