Is gst applicable on interest received from other party (unsecured loan or late payment interest )

Reply-As per Notification no. 12/2017 (central tax rate) dated 28.06.2017, services by way of extending deposits, loan or advances in so far as the consideration  is represented by way of Interest or discount is exempt under GST.

As per Section 15(2)(d) Value of supply shall include Interest or late fee or penalty for delayed payment of any consideration for any supply. Therefore, Interest received from debtors is taxable at the same rate as applicable on supply made to such debtor.