Suggestions on GST Acts (July 2017) by Institute of Chartered Accountants of India
17. Inclusion of Interest, penalty etc. in Value of Supply
Section 15(2)(d) of CGST Act provides that the value of supply shall include interest or late fee or penalty for delayed payment of any consideration for any supply.
Issue
In most of the cases the amount of interest or penalty is not known at the time of supply. To be required to be included in the valuation at the time of supply is a cumbersome task.
Suggestions
It is suggested that clause d of section 15(2) be omitted.
Alternatively, if it needs to be essentially included, it might be considered to shift this clause to section 31 as one of the circumstances requiring the issuance of debit note
Read ICAI Suggestions on GST Act to Govt : July 2017
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