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GST credit on home loan interest

Murali Rotti Sathyanarayana (Manager of Accounts) (165 Points)

18 June 2018

Hello... pls let me know whether GST paid on interest on housing loan EMI can be claimed while filing GST return..
1. Home loan not in business entity name. It is in individual name.
2. If home loan availed in business entity name.

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14 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 18 June 2018

First of give correct details...
The GST charged on Interest on Home loan...?!

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Vinod Babu (24191 Points)
Replied 18 June 2018

For point no. 1. ITC cannot be claimed.
Point no. 2 home loan sanctioned on home. So it becomes personal.

1 Like

Jatin (Accountant) (3479 Points)
Replied 18 June 2018

How can you claim ITC, no GST applicable on Intetest on loan

Murali Rotti Sathyanarayana (Manager of Accounts) (165 Points)
Replied 19 June 2018

Yes Raja P M... like how service tax was applicable earlier on interest part..Now GST..

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 19 June 2018

Dear Mr Murali.,

ST/GST is applicable for Bank's service activities not on Interest...
They Collect ST/GST for their services like "Inspection Charges, Processing Charges, Site Visiting or Valuation Charges and etc.,.

But, Not collect for the Interest...
Bcoz, It's not their Service...

**Please check out Your statement of Loan Process and It's Repayment Schedule...

GOOD LUCK...

1 Like

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Jatin (Accountant) (3479 Points)
Replied 19 June 2018

Agree with Mr. Raja P M Sir

Vinod Babu (24191 Points)
Replied 20 June 2018

Nice explanation

Murali Rotti Sathyanarayana (Manager of Accounts) (165 Points)
Replied 20 June 2018

Mr. Raja sir and Jatin sir are we sure no GST will be levied on any interest on loan ??

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 June 2018

Yes... It's sure...

Please check out Your statement.

Murali Rotti Sathyanarayana (Manager of Accounts) (165 Points)
Replied 20 June 2018

I checked my Statement... I am paying IGST @ 18 percent on interest component included in EMI portion!!!!!..The bank is in different state from the state where I am residing

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Vinod Babu (24191 Points)
Replied 20 June 2018

Yes. ..

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 June 2018

Originally posted by : Murali Rotti Sathyanarayana
	I checked my Statement... I am paying IGST @ 18 percent on interest component included in EMI portion!!!!!..The bank is in different state from the state where I am residing

As per Your reply "Bank is Charged GST on Interest amount then Contact Your bank and Ask the details then recover the amount....

Also you can get some clarity in the following link

https://www.quora.com/Do-banks-charge-GST-on-the-interest-of-a-loan

Vinod Babu (24191 Points)
Replied 20 June 2018

Raja sir is right

Murali Rotti Sathyanarayana (Manager of Accounts) (165 Points)
Replied 30 June 2018

Raja P.M., I have been informed by the bank that GST is applicable on personal loan interest taken through credit card and it's not applicable if I take just a personal loan (not through credit card)... Please confirm