Eye Share: Taxability of Interest Charged from Vendors for Non-Compliance of Rule 36(4)

With the introduction of Rule 36(4) of the CGST Rules, 2017 w.e.f. October 09, 2019, many entities have started raising a claim of interest on the vendors who are not filing their statutory GST returns and making tax payments in time for which the companies have already paid to the vendors. Accordingly, entities are required to shell out part of the working capital and pay more GST for a month even though they have proper tax invoices in support of ITC claim.Mr. Ankiit K...