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 West Bengal GST Act largely echo each other on this issue. According to section 15 of the GST Act, the val...