Interest on Delayed Payment against supply of services is includible in supply value

In re Ganga STP Project Private Limited (GST AAR West Bengal)

The Ganga STP Project Private Limited was awarded a water treatment project by the National Mission for Clean Ganga (NMCG) & Kolkata Metropolitan Development Authority (KMDA). Payments for the project are structured in a way that includes interest on 60% of the project’s capital expenditure (Capex) due to delayed payments. The key question raised is whether this interest should attract GST.

The Central GST Act and the

Please become a Premium member. If you are already a Premium member, login here to access the full content.