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Late fee / interest / penalty for delayed payment of consideration is:
AExcluded from value of supply
BOutside the scope of GST
CTaxable only if separately invoiced
DIncluded in value of supply per Sec 15(2)(d)
Answer & Solution
Correct answer: D. Included in value of supply per Sec 15(2)(d)
1. Sec 15(2)(d) explicitly includes interest, late fee and penalty for delayed payment of consideration in the value of supply.
2. Time of supply for these additions is the date the supplier receives the amount (Sec 12(6)/13(6)).
3. GST is therefore payable on such late-payment charges.
_Source: ICAI BoS CA Final Paper 8, Ch 5 "Value of Supply", §Sec 15(2)(d)_
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