Business News

Interest is charged for late payments on GST-eligible imported products.

Spread the love

An Authority for Advance Ruling (AAR) has ruled that interest for overdue payment on imported products is liable to GST under reverse-charge, which could affect many companies at a time when the Covid pandemic has disrupted supply chains and payment systems.

According to the facts of the case, an Indian subsidiary of a Turkey-based transformer part manufacturer imported products. The Indian arm had secured a credit facility from Citi Bank based on the holding company’s corporate guarantee. A stamp duty had to be paid on behalf of the Indian arm by the Turkey-based corporation, and a refund invoice was raised for the recovery.

The Indian arm had approached the AAR to find out if GST was payable on late payments of imported products and if the sum charged for stamp duty refund was subject to GST. The holding company had “tolerated the act” of collecting payment after a period of 120 days had passed from the date of the invoice for goods supplied to the Indian arm, according to AAR. According to a research note by Nangia Anderson, interest had to be charged by the Indian arm, which is liable for GST under the reverse charge mechanism.

NEWS SOURCE

ALSO READ: Tesla has stopped accepting bitcoin, citing the use of fossil fuels in ‘mining’ cryptocurrency

Recent Posts

As Ola’s Bhavish Aggarwal Faces Criticism, Zomato’s Deepinder Goyal Receives Praise for PR Savvy

The contrasting public images of two prominent Indian startup founders, Zomato's Deepinder Goyal and Ola's…

1 month ago

Singham Again Trailer Launch: What to Expect

The excitement is palpable as Ajay Devgn and director Rohit Shetty gear up for the…

1 month ago

Hardik Pandya Impresses with No-Look Ramp Shot and All-Round Performance in India’s First T20I Win Against Bangladesh

Hardik Pandya showcased his prowess as an allrounder in T20 cricket, contributing significantly with a…

1 month ago

New Haryanvi Song “Bahu Chaudhariya Ki” Launched by Aman Jaji and Pranjal Dahiya

HR Beat Production has unveiled its latest Haryanvi hit, "Bahu Chaudhariya Ki," featuring artists Aman…

2 months ago

Apple’s iPhone 16 Pro Max: Improved Battery Life and Camera Features, but Missing Key AI Updates

Apple's highly anticipated iPhone 16 series is set to launch on Friday, with the flagship…

2 months ago

Music Director Vipin Reshammiya, Father of Himesh Reshammiya, Passes Away at 87

Vipin Reshammiya, father of Himesh Reshammiya, has passed away at the age of 87. He…

2 months ago

This website uses cookies.