Mahendra Dugar (205 Points)
12 July 2017
CA Prabhakar Sinha
(Finance)
(36 Points)
Replied 12 July 2017
As per my point of view
Yes, if your turnover is more thare threshold limiti.e. 20 lakhs, then you will require to register under GST and charge tax on your financial services. 18% GST would be applicable on interest income.
Roger Anton
(2 Points)
Replied 11 September 2018
As a pawnbroker, you make two types of supplies for GST purposes:
1) exempt supply from the provision of loans from which you derive interest income; and
2) taxable supply from the sale of forfeited pledges.
You need not charge GST on interest while GST needs to be charged at the standard-rate of 7% for the sale of forfeited pledges.
CA Virendra Singh
(2 Points)
Replied 28 June 2024
As per Sl. No.27 of Notification No. 12/2017-CT(Rate)dated 28.06.2017 Services by way of-(a) 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) is exempt under GST. As loan against jewellery is also a loan so interest on such loan is exempt from GST.
Therefore on Interest income no GST but on sale of pledged items GST is leaviable.
CAclubindia
