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Interest recovered from employees on loan given, Goods and Services Tax - GST

Issue Id: - 117736
Dated: 28-12-2021
By:- Kaustubh Karandikar

Interest recovered from employees on loan given


  • Contents

XYZ Pvt. Ltd. Is recovering Interest from employees towards personal loan given to them. Is XYZ required to pay GST on the interest received?

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Showing Replies 1 to 11 of 11 Records

Page: 1


1 Dated: 28-12-2021
By:- Rajagopalan Ranganathan

Sir,

According to Sl. No. 27 of Notification No. 12/2017-CT (Rate) dated 28.6.2017 as amended "extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services) is chargeable to CGST @ 'Nil' rate. Similar exemption is available under IGST Act also.


2 Dated: 29-12-2021
By:- KASTURI SETHI

In simple words, only penal interest is taxable under GST Acts.


3 Dated: 26-1-2022
By:- CAHemanth Kumar

Agreed with the experts view.

GST will be applicable only on the following interests

1. Interest which is collected for delay payment of consideration.

2. Credit card Interest.


4 Dated: 28-1-2022
By:- KASTURI SETHI

Dear Sir,

Is interest on credit card penal interest or in routine way ? Pl.quench my thirst for knowledge on this issue.


5 Dated: 28-1-2022
By:- KASTURI SETHI

Dear Sir,

GST is payable on interest recovered on credit card, if the payment was delayed by the consumer. Am I right ?


6 Dated: 28-1-2022
By:- Kaustubh Karandikar

yes kasturi ji, in my view payable.


7 Dated: 28-1-2022
By:- CAHemanth Kumar

Dear Kasturi sethi sir,

For credit card, whether it is normal interest or penal interest GST will be applicable on both.


8 Dated: 28-1-2022
By:- CAHemanth Kumar

Dear Sir,

Interest exemption entry will be as follows

Services by way of-

(a) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services);

(b) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers.


9 Dated: 28-1-2022
By:- KASTURI SETHI

Agreed, Sir. Thanks a lot for your reply.


10 Dated: 31-1-2022
By:- CAHemanth Kumar

Welcome sir.

Im in the process of learning and sharing. Need to learn a lot from experts like u sir.


11 Dated: 2-2-2022
By:- KASTURI SETHI

Dear Sir,

A person whose articles are published in EXCUS CD he is not at learning stage. He is a learned person. If you say that you are at a learning stage, it is your humbleness and politeness and greatness. Thanks and regards for your such disciplined and liberal behaviour.


Page: 1

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