Home Forum Goods and Services Tax - GST Month 8 2023 2023 (8) This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
GST on interest income on loan - Goods and Services Tax - GSTExtract XYZ Pvt. Ltd. and PQR Pvt. Ltd. are not related. XYZ had given loan to PQR and charging interest on the same. In my opinion as per entry no. 27 of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 services by way of 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) are exempt. If we paid interest on loan or earned some interest income on loans or deposits, then that interest is exempt. Therefore XYZ is not required to pay GST on the interest income. However, will be required to proportionately reverse the ITC on the common services. Views of the experts please.
|