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Gst on interest income or expenses

Aggarwal K L (Buisness) (48 Points)

02 July 2017

is there GST on interest income or interest expenses.?

interest received or paid to individual other than financial institutes.

suppose i am registered person under gst and give loan to another registered or unregistered person.

and he pays me interest on it on monthly basis.

does he or i have to pay gst on it. if yes then who is laible to pay and how much,

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5 Replies

sushit shishul (338 Points)
Replied 02 July 2017

No sir, Gst is on Goods and Services. So when you give loan there is no supply of Goods or Services. Interest is your income under head Income from other sources. So you need to pay income tax( if your total income is above 3L)not Gst.

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Nagarajan Ponnusamy (6 Points)
Replied 05 July 2017

I am giving finance against cheque discounting. I am accounted the interest as finance charge. If any service tax is applicable?. My finance charges turnover is below Rs. 20.00 lacs but my finance (pricipal turnover is more than 20.00 lacs. So far I am not make any service tax payments in previous years. Pls clarify shall i registered for Service tax or not?. service tax is applicable for me..

Mohan (Accountant) (4 Points)
Replied 09 September 2017

Mr. Nagarajan,

Registration under Service Tax had been abolished since 1st July 2017. Now it comes under GST portals only. In case your turnover from finance charges will cross Rs.20 lacs, then you have to be registered under GST as well as GST output @ 18% is applicable on such charges.