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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Value of Supply

Under Section 12(6) of the CGST Act, 2017, when is the time of supply for the portion of value that arises from interest or late fee for delayed payment of consideration for goods?

The time of supply for interest, late fee or penalty for delayed payment is the date on which the supplier actually receives that addition in value, as provided in Section 12(6), rather than the original invoice date or delivery date.

  1. AThe date of issue of the original invoice
  2. BThe date on which the supplier receives such addition in valueCorrect
  3. CThe date of delivery of the goods
  4. DThe date immediately following thirty days from the invoice

Explanation

Section 15(2)(d) includes interest, late fee or penalty for delayed payment in value. Section 12(6) fixes the time of supply for that addition as the date the supplier receives it, not the original invoice date.

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