Gst on interest paid

This query is : Resolved

mona (Querist)
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15 August 2018 We have to pay interest on loans taken. Have we to add gst on that Advice which of the following 2 options

1. Interest 1,00,000
gst 18,000
total 1,18,000
tds @ 10 % 10,000
to pay 1,08,000

Option 2 Interest 1,00,000
tds 10,000
to pay 90,000

Pl advice.

Mona

RAJA P M

RAJA P M (Expert)
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15 August 2018 no need to pay gst for interest

mona

mona (Querist)
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16 August 2018 Ok means its not my liability to charge or pay gst...pl clarify

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RAJA P M

RAJA P M (Expert)
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16 August 2018 GST not applicable on Interest

Message likes : 1 times

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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16 August 2018 Services by way of extending deposits, loans or advances where the consideration is represented by interest is an exempt supply as per Notification 12/2017 -CGST- Central Rate; Hence there is no liability to charge or pay GST on interest.