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2019 (8) TMI 1221 - AAR - GSTProviding services of financial assistance in the form of Loan - related party transaction or not - providing financial assistance in the form of loan to various Government of Gujarat entities - whether such Gujarat Stated owned entities and GSFS become related persons in GST? - HELD THAT:- The relationship between Gujarat State Financial Services Ltd. and Government or Government entities is that of related person as defined under Section 15 of Central Goods and Services Tax Act 2017 and Gujarat Goods and Services Tax Act 2017. Levy of GST - notional processing fees/ notional any other charges, provided by way of loans to Gujarat state owned entities - Applicant is not charging any processing fees/ any other charges, for providing to Government of Gujarat State owned entities, and interest being charged as full consideration. HELD THAT:- The applicant makes the supply of loan and for which consideration is only interest. As stated by the applicant there is no other consideration so even if the service is provided to related party the applicant will be eligible for exemption under sub entry (a) of entry 27 of Notification No. 12/2017-Central Tax (Rate) under CGST Act 2017 and corresponding State notification No. 12/2017- State Tax (Rate) under GGST Act 2017. The said notification neither talks about related – unrelated party nor about notional consideration. Therefore the question of charging GST on notional consideration does not arise in this case. If they actually charge processing fee or any other charges, other than interest, then applicant will be liable for GST.
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