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GST on Interest component of Loan EMI

Goods and Services Tax - Started By: - Shivang Sharma - Dated:- 7-11-2017 Last Replied Date:- 8-11-2017 - The definition of Services under CGST Act specifically excludes money but includes activities relating to the use of money or its conversion by .....

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money, which is correct. But they are also charging 's. The point here is interest charged by Banks is only for the use of money and use of money is not a service as per the definition of Services. The Service only includes activities in relatio .....

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which is charged when the payment of the bill is made after the due date. Experts views are solicited. - Reply By rajkumar shukla - The Reply = kindly see section 15(2) of cgst. interest or late fee or penalty is includible in the value for cgst. - R .....

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mplete only after charging of interest, interest forms the part of taxable value.In routine, no GST is applicable on interest. It is further clear from the following extract and example :- GST - Time of Supply in GST - Procedure for - Reply By Ganesh .....

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s advisable to get clarity from the bank. Thanks. - Reply By Shivang Sharma - The Reply = Many thanks for your reply experts... I don't accept the view that Banks action is covered by Section 15(2)(d) - Value of Supply shall include interest or l .....

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y Banks on Interest component of EMI (which is a consideration) for use of money (personal loan provided by Bank). And 'Use of money is specifically excluded from definition of Service under CGST Act. So Banks action is not covered under 15(2)(d) .....

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